The Explosion of Canal Building in the 1820s and 1830s

question 10

Multiple Choice

The explosion of canal building in the 1820s and 1830s was caused by the

• A) success of the Erie Canal.
• B) impact of the protective tariff.
• C) development of the New England textile industry.
• D) provision of federal subsidies for canal construction.

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Definitions:

Consumption Expenditures

Total spending by households on goods and services, excluding purchases of new housing.

Saving

The process of setting aside a portion of current income for future use.

Domestic Investment

Financial expenditures within a country on capital goods that will be used for future production, such as buildings, machinery, and equipment.

Goods and Services

Physical products and intangible acts or performances offered in the market for consumption.