Which statement best describes the impact of the Panic of 1837 on state governments?
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Correct answer: Many states defaulted on debts and halted internal improvements
State governments had borrowed heavily to fund canals and railroads. When the economy collapsed and tax revenues plummeted, several states defaulted on their bonds, leading to a loss of international credit for years.
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More Panic of 1837 questions
- The Specie Circular was most unpopular among which of the following groups?
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