Homework 6

A  The failure of the southern states on a scheme to build a canal from South Carolina to Alabama

B  A conscious decision by the wealthier Southerners to minimize the chance that poorer Southerners would want to migrate north

C  The inability of the South to engage in seignorage (printing money) to generate revenue

D  The southern states spending most of their money to import cotton

E  Crippling taxes on the South from the North so that the South could pay the North back for the cost of the war

A  FALSE

B  TRUE

A  “No way. The South’s real commodity output per capita increased during that decade.”

B  “Who cares? The class is almost as boring as its teacher…and I mean BORING”

C  “The class did not cover how the South and North were affected economically by the Civil War.”

D  “While the South’s real commodity output per capita did fall during that time, the North’s only increased a little.”

E  “That’s right.”

A  They increased, then decreased, then increased again

B  They were unchanged

C  They increased but only slightly

D  They skyrocketed up due to the decline in the labor supply

E  They decreased

A  The South had the advantage in both manpower and manufacturing

B  The North had the advantage in manufacturing while the South had the advantage in manpower

C  They were evenly matched in both manpower and manufacturing

D  The North had the advantage in both manpower and manufacturing

E  The North had the advantage in manpower while the South had the advantage in manufacturing

A  Keeping interest rates low by increasing the money supply

B  By allowing government spending increases when the economy was in recession

C  By establishing a central bank on a permanent basis

D  By providing deposit insurance

E  Adding silver to the money supply

A  TRUE

B  FALSE

A  Provided a lot of credit to potential borrowers on the western frontier

B  Provided much needed loans to disadvantaged areas of the country

C  Supplied the necessary emergency financing during the War of 1812

D  Helped finance the Gold Rush of 1849

E  Served as a lender of last resort to the state banks

A  Despite laws to the contrary, states began to print their own money even after the Constitution was implemented

B  After the Revolutionary War, people believed the economy could get along fine with just paper money and no gold

C  Silver gradually disappeared from the money supply

D  Without silver, there was a concern that the economy would experience deflation

E  It included both gold and silver

A  Because the country had a tremendously large budget surplus so it was easy to pay it back

B  Because the holders of the debt were the poorer members of society

C  Because the country’s leaders believed it was their gentlemanly duty to do so

D  Because the holders of the debt were veterans of the conflict

E  Because it would help ensure the country would have access to loans in the future and could borrow at a lower rate of interest