One Serious Economic Problem Under the Articles of Confederation Was

question 65

Multiple Choice

One serious economic problem under the Articles of Confederation was

• A) a scarcity of good farmland.
• B) shortage of "hard money."
• C) the impossibility of obtaining credit.
• D) excessively high income taxes.
• E) low wages caused by an oversupply of labor.

---

Definitions:

Marginal Propensity

The proportion of an additional income that an individual is likely to consume rather than save.

Saving

The portion of income that is not spent on consumption but is kept aside for future use, investments, or emergencies.

Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

Consumption Spending

The total money spent by households in an economy on goods and services.