What was one of the key shortcomings of the government under the Articles of Confederation regarding the economy?

Prepare for the US Constitution Requirement Exam for California Teaching. Utilize flashcards and multiple-choice questions with hints and explanations to boost your readiness and confidence.

One of the key shortcomings of the government under the Articles of Confederation regarding the economy was the inability to collect taxes. This issue significantly hampered the government's ability to generate revenue needed for operational expenses and to pay off debts incurred during the Revolutionary War. The federal government depended on voluntary contributions from the states, which were often unreliable and insufficient.

Without the power to levy taxes, the central government could not fund essential services or initiatives, leading to economic instability and resentment among the states. This lack of financial resources made it challenging to address pressing national concerns and weakened the government's overall authority, ultimately contributing to the call for a stronger central government and the drafting of the Constitution. The other options reflect different challenges but do not capture this core issue of fiscal authority that was critical to the functioning of the government during that period.

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