Answer:
When interest rates are cut, there is an increase both in spending on durables and net exports. Both channels lead to higher aggregate spending and thus higher output.
Explanation:
I would say that the sectional tensions strengthened during the 1850s mostly because of slavery. As you already know, historically, the North and the South of US were very different. The North went out of its way to abolish slavery, whereas the South was pro-slavery. This is what created many tensions, and later on, even more wars between these two sections.
