In Brinley Thomas' (1954)theory of the Atlantic Economy

question 45

Multiple Choice

In Brinley Thomas' (1954) theory of the Atlantic Economy,

• A) cotton exports to Europe drove the growth of the U.S. economy.
• B) people and capital moved to the U.S. when U.S. economic growth was strong.
• C) the peaks of the U.S. business cycle were closely aligned with that of European peaks.
• D) all of the above are true.

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Definitions:

Letter Of Credit

A written statement by a bank that money will be paid, provided conditions specified in the letter are met.

Factored Inventory Loan

A type of financing where a company borrows money against the value of its inventory, which is often controlled or managed by the lender.

Line Of Credit

A financial arrangement between a lender and a borrower that allows the borrower to draw funds up to a predefined limit as needed.

Operating Cycle

The operating cycle is the duration it takes for a business to convert its inventory and other inputs into cash through sales, encompassing the production and sales process.