Post-War Economic Effects (Page 1)

Flashcards covering key postwar economic effects described in Page 1 notes.

What did the split from Britain do to trade patterns after the war?

It interrupted normal trade patterns and required establishing new markets.

What trade restriction did Britain place on American trade, and what was the consequence?

Britain limited trade in the British West Indies, forcing the U.S. to seek new markets, which took time.

What happened to the money from foreign allies after the war, and what was the consequence?

We used up all the money from our foreign allies and no new money was coming.

Whom did state governments owe debts to after the war?

Wealthy American citizens and foreign nations.

What happened to the money supply when Britain reopened trade and Americans bought goods?

Hard money (gold and silver) left the country, reducing the money supply.

How did the reduced money supply affect ordinary Americans with loans?

Many faced difficulty paying off loans; borrowers who had borrowed when prices were higher had trouble repaying their debts.