The Erie Canal provided the first reliable and relatively quick east-west link in markets. This link, consequently,
(a) increased profit margins and expanded markets for agriculturalists.
(b) increased consumer prices in all markets.
(c) increased transportation costs.
(d) hindered trade and the accumulation of wealth.
(a)
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Which of the following is a limitation of using arithmetic averages to calculate growth rates?
A) Arithmetic averages do not capture the exponential nature of growth and thus are not apt for long-run prediction. B) Arithmetic averages cannot be used in case of negative growth. C) Arithmetic averages are difficult to calculate. D) The calculation of growth using arithmetic averages requires more data than other methods.
The quantity of money is $1 billion, the price level is 1.10, and real GDP is $10 billion. What is the velocity of circulation?
What will be an ideal response?
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. The real risk-free interest rate rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). c. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). d. The real risk-free interest rate and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Information about preferences is ordinal if:
A. the information tells us something about the intensity of the consumer's preferences. B. the information allows us to make comparisons between the preferences of different consumers. C. the information allows us to determine only whether one alternative is better or worse than another. D. the information allows us to make comparisons between the preference of the same consumer at different points in time.