Fogel Argued That Railroads Were More Cost Effective Than Canals

question 40

Multiple Choice

Fogel argued that railroads were more cost effective than canals because railroads were faster and were in service all year and that using rail instead of canals would ____.

• A) lower freight rates on the railroads.
• B) lower government subsidies for railroads.
• C) lower inventories of grain in the East.
• D) reduce the wheat being shipped to Europe.

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Definitions:

Money Market Mutual Funds

Investment funds that invest in short-term debt securities, offering investors a high degree of liquidity and typically low risk.

M1 Money Supply

The measure of the most liquid components of the money supply, including currency in circulation and demand deposits in banks.

Checkable Deposits

Bank deposits that allow the account owner to write checks to third parties; debit cards can also access these deposits and transmit them electronically.

Nonbank Public

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