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Jlenok [28]
3 years ago
15

Which best describes why taxes and savings are considered leakage factors?

History
2 answers:
Ilya [14]3 years ago
5 0
<span>b) They take money out of the economic system.</span>
Neko [114]3 years ago
3 0

The correct answer is the second (B).

Taxes and savings deposits draw currency from the economy's circulation. This means that less money will circulate in the economy, reducing consumption and cooling economic activity. Hence, the term "leakage factors" is as if money leaked out of the economy, momentarily in the case of savings and indefinitely in the case of taxes collected. This is because, depending on your view on the fiscal scenario, the Government may decide not to put the money back into the economy.

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Key points

The Articles of Confederation comprised the United States’ first constitution, lasting from 1776 until 1789. The Articles established a weak central government and placed most powers in the hands of the states.

Under the Articles, the US economy faltered, since the central government lacked the power to enforce tax laws or regulate commerce.

Shays’s Rebellion, an uprising of Revolutionary War veterans in Massachusetts that both the state and national governments struggled to address due to a lack of centralized military power, illustrated the need to create a stronger governing system.

America: the teenage years

The United States’ transition from a ragtag group of colonies to a successful independent nation was a little like the transition period from childhood to adulthood. As the colonies matured, American colonists grew to despise being treated as the children of Great Britain. Like rebellious teens, they vowed that when they won their independence, their government would be nothing like that of the mother country.

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Read the full text of the Articles of Confederation

The Articles of Confederation held the new United States together long enough for it to prevail in the Revolutionary War, but once the war was over the league of friends quickly became a league of impoverished quibblers. The Founders had been so concerned with making sure the central government couldn’t become too powerful that they neglected to make it powerful enough to solve the issues facing a new nation.

In this article, you’ll learn about the structure of government under the Articles of Confederation, and about the series of economic and military crises that demonstrated the need for a stronger government.

The US government under the Articles of Confederation

The American states evolved from separate colonies, with unique histories and societies. In the years before and during the Revolution, they learned to find common cause with each other, but they hardly saw themselves as a unified nation.

The Articles of Confederation exemplified this mindset. The document created a confederacy, in which states considered themselves independent entities linked together for limited purposes, such as national defense. State governments had the sovereignty to rule within their own territories. The national government had few powers. It could coin money, direct the post office, and negotiate with foreign powers, including Native American tribes. To raise money or soldiers, it could only request that the states provide what was needed.

hope this helps

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4 years ago
Ask a question about your assignment
gulaghasi [49]
I think that the answer is letter (B)
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3 years ago
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ch4aika [34]
The answer is C. I hope that helps!
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Who was the Marshall Plan named after?
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