Final Answer:
Debts (Hamilton policy) is b) Were assumed by the federal government.
Step-by-step explanation:
State debts were assumed by the federal government as part of Alexander Hamilton's financial policy. This decision aimed to consolidate the debts incurred by individual states during the Revolutionary War under the newly formed federal government. Hamilton believed that by assuming and managing these debts at the national level, the federal government could establish its creditworthiness, create a stable financial system, and foster economic growth.
The assumption of state debts was a contentious issue at the time, leading to debates and negotiations. Ultimately, the federal government took on the responsibility of repaying the debts accrued by the states, contributing to the establishment of a more unified and financially stable nation.
The Alien and Sedition Acts were separate legislative acts that aimed to address perceived threats to national security, and they did not have a direct impact on the assumption of state debts. The Whiskey Rebellion, on the other hand, was a response to a federal tax on distilled spirits and was not directly related to the assumption of state debts. Additionally, the assumption of state debts did not directly lead to an increase in individual wealth but was part of broader economic policies designed to shape the financial stability of the United States.