Question

Which of the following statements correctly explains economic conditions in the North during the Civil War?

-Foreign trade kept the economy moving forward.
-Industries were booming as they made war supplies.
-Lack of European trade reduced available funds.
-Taxes and bonds were raised to finance the war.
-Numerous battles were destroying farm lands.
-The economy was beset by massive inflation and debt.

You may select more than one answer.

Answer 1

The correct options are "Foreign trade kept the economy moving forward", "Industries were booming as they made war supplies", and "Taxes and bonds were raised to finance the war".

Even before the Civil War, the North was moving towards a peak in the development of manufacturing and commerce. When war-time arrived, the region experienced a significant boom by being able to output 90% of the entire country's product. The North produced way more cotton, textiles, leather materials, and more importantly weaponery.

Hope this helps!