From the 1870s Until the 1960s Most US Manufacturing Industry

question 3

Multiple Choice

From the 1870s until the 1960s most US manufacturing industry was located within a Manufacturing Belt. Why was this so?

• A) initial advantage
• B) specialization
• C) multiplier effects
• D) historical path dependence

---

Definitions:

Bond Issue

The process by which a government or corporation raises funds by selling bonds to investors, which are then repaid with interest at a future date.

Coupon

The interest rate stated on a bond, representing the amount of interest paid to bondholders on an annual basis.

Interest Tax Shield

The reduction in income taxes that results from deducting interest payments on debt from taxable income.

Unlevered Cost of Capital

The cost of capital for a company that has no debt, representing only the cost of equity.