Determine whether the following effects of the American Revolution were political or economic. Britain acknowledged the independ
ence of the United States. Countries that participated in the war agreed to repay debts to one another. The war opened up discussion about racial equality.
<em>"Britain acknowledged the independence of the United States"</em> is a political effect. This meant, that the British Empire would not have any interference in the public policy of the territories of the newly formed country.
<em>"Countries that participated in war agreed to repay debts to one another"</em> is an economic effect. The monetary compensation for the effects of war would bring affect the budget of the newly formed country. This was an important issue, as the Continental Congress had issues collecting taxes from the states during the war and had to issue bonds. It would take time for the country to recover economically.
<em>"The war opened up discussion about racial equality"</em> is a political effect. This discussion was the first in a series of events that would lead up to the Civil War between the Union and the Confederate States".
In 1913, President Woodrow Wilson signed the Federal Reserve Act which created the Federal Reserve Bank of the United States which would monitor and regulate the Dollar.
