Answer:a) The financial crisis in New York City in 1975 was primarily caused by a combination of factors. These included economic decline, budget mismanagement, high levels of debt, and a lack of fiscal discipline. The city had experienced a significant decline in industries such as manufacturing, leading to a decrease in tax revenue. Additionally, the city's expenses had grown rapidly, including rising costs for social welfare programs and employee wages. b) The federal government provided assistance to New York City by implementing a bailout plan. This involved granting the city access to financial assistance and loans to help address its immediate fiscal challenges. The assistance was primarily provided through the creation of the New York City Emergency Financial Control Board, which was tasked with overseeing the city's finances and implementing necessary reforms. c) The bailout came with conditions attached to ensure fiscal responsibility and accountability. One of the key conditions was the establishment of the Emergency Financial Control Board mentioned earlier. This board had the authority to review and approve the city's budget, control spending, and monitor financial operations. It also required the city to implement austerity measures, such as reducing expenditures and cutting back on services. d) The bailout had a significant impact on New York City's future financial policies. It forced the city to adopt more disciplined financial management practices and prioritize long-term sustainability. The control board's oversight helped bring about fiscal stability by enforcing budgetary constraints and ensuring that the city's finances were effectively managed. This experience led to the implementation of stronger financial controls and ongoing monitoring to prevent a similar crisis in the future. It also highlighted the importance of maintaining a balanced budget, managing debt levels, and making responsible financial decisions. Overall, the bailout served as a catalyst for positive change in the city's financial policies and practices.
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