The Advent of the Gasoline-Powered Tractor in the 1920s Meant

question 72

Multiple Choice

The advent of the gasoline-powered tractor in the 1920s meant that

• A) productivity went way up but so did debt.
• B) farmers did not need to plow as much land to make the same profit.
• C) farmers would have to spend time training hands on new equipment.
• D) bigger crops could be grown on smaller areas.
• E) None of these

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Definitions:

Annual Interest Rate

The percentage of principal that is paid as interest to the lender annually, not accounting for the compound interest within that year.

Maturity Value

The final amount payable at the end of a financial instrument's term, including the principal and accumulated interest.

Commercial Paper

Promissory notes issued by large corporations to borrow funds for a short term.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from a country's central bank or Federal Reserve.