USA HISTORY

Detailed explanation-1: -In order to pay for its significant expenditures during the Revolution, Congress had two options: print more money or obtain loans to meet the budget deficit. In practice it did both, but relied more on the printing of money, which led to hyperinflation.

Detailed explanation-2: -The Growing National Debt Debts incurred during the American Revolutionary War amounted to over $75 million by January 1, 1791. Over the next 45 years, the debt continued to grow until 1835 when it notably shrank due to the sale of federally-owned lands and cuts to the federal budget.

Detailed explanation-3: -2 // Congress Printed Its Own Money (28%): Since Congress didn’t have the power to tax and there was no organized national bank, printing money was the primary source of funding Congress used during the Revolutionary War starting in 1775.

Detailed explanation-4: -Because of the inefficiency of state tax-collecting systems, Congress often lacked the money it needed to service its sizable war debts, to maintain the military, and to pay other costs of government.