The Newly Efficient Taxation Systems in Many European Realms of the Seventeenth

question 61

Multiple Choice

The newly efficient taxation systems in many European realms of the seventeenth and eighteenth centuries paid for many expenses,but by far the most expensive expenditure made by states was:

• A)war.
• B)patronage of the arts.
• C)public building programs.
• D)infrastructure renewal.
• E)construction of royal residences.

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Definitions:

Quantity of Money

The total amount of money in circulation or in existence within an economy at a given time.

Interest Rate

The price, in terms of a percentage of the principal, a borrower incurs from a lender to utilize assets.

Hyperinflation

Runaway inflation; in the United States, double-digit inflation.

Monetary Policy

The process by which a central bank, like the Federal Reserve, controls the supply of money in an economy, often targeting inflation or employment levels.