That business cycle would be Expansion
Hope this helps
Answer:
the answer would be D tho,
Explanation:
Before the Panama Canal was completed in 1941, the only way to trade was to sail around Cape Horn in South America which was a 13,000 mile trip and it took about 3-6 months. It was a rough journey with seasickness, and treacherous waters. However, once the Panama Canal was completed, the distance was cut by almost half to 5200 miles and the time of journey down to about a month.
Because of the Canal, the U.S. was able to ship supplies so much faster. The faster a country can ship, the more willing they are to trade. They are willing to trade more because they don't have to spend so much money on fuel. Because they spend less money on fuel, they can carry more supplies. Now most all the money the U.S. gets from trade is through the Panama Canal. If you are confused, here is an example of how it works. If England were selling products to Peru, England's economy would suffer if the Canal were not operating. Without access to the Canal, the cost of exports from England to Peru would significantly increase because England would have to regain the added expenses involved in sailing around South America. Because of increased prices, Peru could not afford to purchase as many products from England, which in turn would decrease England's revenues gained from exports. Decreased revenues means that England would have less money available to purchase products from the United States and other countries. A "domino effect" would be set in motion as the United States and other countries experienced similar problems with their exports and imports.
America prospers from the same example. If San Fransisco wanted to make trade with New York, and they were trading perishable food items, the three month voyage (without the canal) would spoil the food. But with the Panama Canal the one month voyage would keep the goods perfectly ripe and ready for trade.
Hope this helps
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