Author Question: During the great canal-building era, from roughly 1815 to 1843, Hughes and Cain (2011) claim that ... (Read 41 times)

Kikoku · **on:** Jun 30, 2018

During the great canal-building era, from roughly 1815 to 1843, Hughes and Cain (2011) claim that

(a) most canals earned normal profits.
(b) no canals earned profits.
(c) all canals in the initial period of construction earned normal profits but none did in the later period because of over-construction and competition from the railroads.
(d) the Erie Canal was one of the few, perhaps the only one, to earn normal profits.

Question 2

A critical assumption for the simple money multiplier (1/ rrd) to hold is that

a. banks do not hold excess reserves.
b. the public does not increase their level of currency holdings.
c. the required reserve ratio has to be greater than one.
d. both a and b.
e. all of the above.