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Expansionary and contractionary policies can be used to encourage or discourage economic growth. Expansionary policies generally lower taxes and give consumers and producers additional money, which encourages spending and growth. This is done when unemployment is high. On the other hand, contractionary policies generally raise taxes, which can give consumers and producers less to spend. This can cause less economic growth, but is necessary when the economy is growing too quickly and inflation is rising.
the difference between expansionary policy and contractionary policy
expansionary policies are used to stimulate the economy and reduce unemployment
<span>contractionary polices are used to reduce economic growth and combat inflation</span><span>
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Putting ones eggs in one basket simply means when one concentrates all thiee efforts and resources in just one particular area.
The Southern economy had a warm climate as well as a fertile soil and this made it appealing to agriculture. Southerners concentrated their efforts on agriculture as it was seen to be very profitable and little effort was put in the indutrial sector.
Crops such as rice, tobacco, cotton, and sugar cane were grown in large quantities and were sold for a profit.
Therefore, the correct option is that the South only focused on agricultural products.