Which of the Following Statements Best Expresses the Criticism Leveled

question 9

Multiple Choice

Which of the following statements best expresses the criticism leveled against Hamilton's proposal that Congress assume outstanding state debts?

• A) The plan is fine except for the fact that it will cost the government far more than it can afford.
• B) The plan will enrich speculators who have purchased securities at a small fraction of their face value.
• C) The plan will disrupt the national economy.
• D) The plan violates the Constitution, which does not specifically authorize Congress to assume state debts.

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Definitions:

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price; it quantifies the sensitivity of demand relative to price changes.

Percent Change

A mathematical calculation that describes the degree of change over time, expressed as a percentage.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded for a given period.

Price Ceiling

a legally established maximum price for goods or services, aimed at keeping prices from rising to high levels.