What was one of the economic consequences of McKinley’s presidency due to gold discoveries in 1897?

One of the economic consequences of McKinley’s presidency owing to the gold discoveries in 1897 was the inflation of the money supply. The discovery of gold in Alaska, as well as the Klondike Gold Rush, contributed significantly to an influx of gold into the U.S. economy. This new supply of gold meant that more currency could be backed by this precious metal, allowing for a broader circulation of money within the economy.

As the money supply increased, inflation occurred because more money in circulation typically leads to higher prices, assuming demand remains constant. This was particularly relevant during a time when there were ongoing debates about the gold standard versus bimetallism (gold and silver), which heavily influenced monetary policy discussions. The increase in the money supply through gold discoveries under McKinley’s administration helped stabilize the economy following earlier financial crises and set the stage for economic growth in the subsequent years.

The other choices do not directly relate to the economic impact of the gold discoveries during McKinley’s presidency. An increase in unemployment, a decrease in tariffs, or deflationary pressures would not accurately represent the direct effects of the influx of gold during that era.