Ch 5 vocabulary
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| tariffs | taxes on imports or exports
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| interstate commerce | trade between two or more states
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| inflation | occurs when there are increased prices for goods and services combined with the reduced value of money
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| depression | a period of low economic activity with a rise in unemployment
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| Shay's Rebellion | the uprising of farmers in Massachusetts 1786 to protest high taxes and heavy debt
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| What problems did the United States experience with Spain and Great Britain? | Trading issues; Great Britain cut off trade; Spain cut off trade in the Mississippi River
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| What are some possible results of the growing problems between United States and Britain? Why? | hurt American business; Farmers could not export goods to West Indies; had to hire British ships to export to Britain; British trade in America grew while American trade was restricted
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| What difficulties were involved with interstate commerce? | Trade laws differed from state to state; federal gov't had no power to regulate; made it difficult to trade across state lines
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| What was the cause of inflation in the nation and how could it have been prevented? | The new nation was limited on their trade. If the army was kept up Spain would not have cut off trade.
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| How did Massachusett's tax policy affect farmers? | Massachusett's tax policy taxed crops
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| Why did Madison and Hamilton call for a Constitutional convention. | Madison and Hamilton called for a Constitutional convention because the articles of confederation was a failure and because of Shay's rebellion.
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| Domestic problems of the United States in the beginning. | depression; inflation; interstate commerce;
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| International problems of the United States in the beginning. | Britain closed ports to American ships and forced America to pay high tariffs; Spain closed the lower Mississippi to U.S. shipping
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