Why Were Finances the Greatest Weakness of the Confederation Government

question 89

Multiple Choice

Why were finances the greatest weakness of the Confederation government?

• A) States were asked to "voluntarily" contribute to Congress's budget but rarely did or sent little.
• B) An event known as the Newburgh Conspiracy led to a successful coup that had a major impact on the economy.
• C) The laws of Congress were too strictly enforced, leading many people to file bankruptcy.
• D) Too much money was put toward the executive and judiciary branches and not enough toward the people.
• E) The Confederation taxes were too high in an effort to pay off war debts from the Revolution.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price.

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product.

Demand Decrease

A situation where the quantity of a product or service desired by buyers decreases, usually due to changes in consumer preferences, incomes, or prices of related goods.

Demand Equation

A mathematical representation expressing the relationship between the quantity of a good demanded and its price, along with other factors affecting demand.