Question

which was one of the economic problems that the united states was facing during the 1790s?
a. the federal government had a budget surplus and did not know how to spend its extra money.
b. the federal and state governments needed to repay money they had borrowed to pay for the revolutionary war.
c. the federal government had borrowed a substantial amount of money to build washington, d.c. and had a large debt.
d. the federal government had no means to collect taxes to pay for government services.

Explanation:

To determine the correct answer, we analyze each option:

• Option A: The US federal government in the 1790s was in debt, not having a budget surplus, so A is incorrect.
• Option B: The main debt issue was from the federal government (and states) borrowing for the Revolutionary War, and the need to repay that debt was a key economic problem. This aligns with historical context.
• Option C: The federal government's debt in the 1790s was primarily from the Revolutionary War, not from building Washington, D.C., so C is incorrect.
• Option D: The federal government could collect taxes (e.g., tariffs), so D is incorrect.

Answer:

B. The federal and state governments needed to repay money they had borrowed to pay for the Revolutionary War.