QUESTION IMAGE
Question
the articles of confederation also gave the national government very limited powers to regulate currency. the table below shows some of the economic problems this created. match each cause to the effect.
selling goods in other states was difficult because it often meant changing currencies.
any state government could print its own form of money.
states over - printed money, which made some currencies almost worthless.
cause
the articles gave the national government the power to coin currency, but it did not limit this power to only the national government.
people in different states often used different forms of currency.
some individual states tried to pay off their debts by printing extra paper money.
effect
- When the national government had limited currency - regulating powers and states could print their own money, people in different states used different forms of currency. This made selling goods in other states difficult as it often meant changing currencies. So, "People in different states often used different forms of currency" is the cause for "Selling goods in other states was difficult because it often meant changing currencies".
- The Articles giving the national government the power to coin currency but not limiting it to the national government led to any state government being able to print its own form of money. So, "The Articles gave the national government the power to coin currency, but it did not limit this power to only the national government" is the cause for "Any state government could print its own form of money".
- When some individual states tried to pay off their debts by printing extra paper - money, it led to states over - printing money, which made some currencies almost worthless. So, "Some individual states tried to pay off their debts by printing extra paper money" is the cause for "States over - printed money, which made some currencies almost worthless".
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Cause: The Articles gave the national government the power to coin currency, but it did not limit this power to only the national government. Effect: Any state government could print its own form of money.
Cause: People in different states often used different forms of currency. Effect: Selling goods in other states was difficult because it often meant changing currencies.
Cause: Some individual states tried to pay off their debts by printing extra paper money. Effect: States over - printed money, which made some currencies almost worthless.