Explanation: The Athenian state was actually a direct democracy while the US is a representative democracy. Citizens are allowed to vote in both states, and both also have a bicameral legislature.
By the end of the revolutionary war the new government was formed as a confederation of independent states which were loosely linked to one another.
While initially seen as a strength, things eventually became difficult to manage as many states started to print their own money, make their own international trade pacts and were even building their own independent military.
This was seen as a threat to a new nation and constitutional convention was conducted in Philadelphia. 12 out of the 13 States participated in this convention with the aim of providing some kind of a homogeneity to the new country.
By the end of the convention, the constitution gave way to 3 different branches of government which still form the core of the United States:
1. The Legislative Branch
2. The Executive Branch
3. The Judicial Branch
Households dissave when en their consumption exceeds their incomes. The extra money comes from two sources: credit and past incomes, also known as savings. When a house dissaves it can either borrow money from financial institutions or spend money that was previously saved. Everyone cannot dissave at the same time because banks would not have enough money to fund everybody's excessive consumption.
