Public versus private initiatives to expand canals and railroads in the United States:
a. featured a large percentage of government investment.
b. featured a small percentage of government investment.
c. were dominated by private investment.
d. were exclusively private due to strict constructionism.
Question 2
During the 1930s, banks found it hard to solve the asymmetric information problem between borrowers and lenders, because ____.
a. Many borrowers lacked adequate collateral
b. Changing federal bank regulations created uncertainty
c. The fall in the stock of money reduced aggregate demand
d. Interest rates had fallen to liquidity trap levels
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