Which of the following correctly describes the economic situation in the Confederacy during the war? A.
The Southern economy was a largely moneyless economy because of its high production of agricultural goods, which led the economy to be much stronger during the war years than expected.

B.
The Confederate government faced a severe shortage of funds and attempted to solve that problem by printing additional currency, which led to severe inflation.

C.
The Confederate government faced the challenge of supporting the war effort financially without large tax increases and solved that challenge by selling war bonds, which helped them avoid the danger of inflation.

D.
Most Southern plantations had been extremely profitable for decades, allowing their owners to save huge sums of money, which were then used to finance the war efforts with much less difficulty than expected.