The Principal Reform Envisioned by the Townshend Revenue Act Was

question 47

Multiple Choice

The principal reform envisioned by the Townshend Revenue Act was to

• A)raise revenue.
• B)unload tea from the East India Company.
• C)establish the power of the King to tax.
• D)hurt colonial trade.
• E)pay the salaries of colonial governors and judges.

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Definitions:

Crowding-out

A phenomenon where increased government spending leads to a reduction in private sector spending and investment due to higher interest rates.

Aggregate Demand

The complete market appetite for all goods and services in an economy, assessed at a defined price level during a particular duration.

Medium of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties.

Federal Funds Rate

The interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.