One Way That the Federal Government Assisted in the Construction

question 22

Multiple Choice

One way that the federal government assisted in the construction of railroads and canals was by

• A)awarding land grants to support transportation projects.
• B)tax abatements.
• C)tax refunds.
• D)awarding construction contracts directly.
• E)purchasing stock in transportation companies.

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Definitions:

Crowding Out

The phenomenon where increased government borrowing leads to higher interest rates, reducing private investment and spending in the economy.

Real GDP

The measure of a country's gross domestic product adjusted for inflation, reflecting the real value of goods and services produced.

Marginal Propensity

The ratio of change in consumption to the change in income, indicating how much of additional income will be spent or saved.

Discretionary Expansionary

Refers to fiscal or monetary policy actions initiated by a government or central bank to stimulate economic growth.