Homework 6

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

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

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

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

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

A  FALSE

B  TRUE

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

B  “That’s right.”

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

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

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

A  They were unchanged

B  They decreased

C  They increased but only slightly

D  They increased, then decreased, then increased again

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

A  They were evenly matched in both manpower and manufacturing

B  The South had the advantage in both manpower and manufacturing

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

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

E  The North had the advantage in both manpower and 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  Supplied the necessary emergency financing during the War of 1812

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

C  Helped finance the Gold Rush of 1849

D  Provided much needed loans to disadvantaged areas of the country

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

A  It included both gold and silver

B  Silver gradually disappeared from the money supply

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

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

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

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

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

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

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

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