Why Did the South Fail to Attract Significant Economic Development

question 26

Multiple Choice

Why did the South fail to attract significant economic development in the wake of Reconstruction?

• A) Northern investors stayed away, appalled by southern race relations.
• B) Northerners considered a South without African-Americans in chains too risky for investment.
• C) Investors came to the South for cheap labor and low taxes, so they made few capital investments in the region.
• D) Southern white supremacists tended to scare off northern capital industries.
• E) Southern Klansmen scared away many interested investors.

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Definitions:

Aggregate Demand

The complete summon for goods and services in an economy, quantified at a particular level of overall price throughout a definite period.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period, which can be influenced by factors like production technology and labor availability.

Increased Immigration

A scenario where the number of people entering a country to live permanently exceeds the number leaving, affecting various aspects of the economy, including the labor market.

Aggregate Demand

The total demand for all goods and services within an economy at a specific time and price level.