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The federal government will take all the debt across the country, instead of each state having to pay specific debts. The federal government will then get to control all the debt repays, and also so then the countries they owe don't blame the entire United States for one state not paying.

True or False

User Arish Khan
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Final answer:

The statement is true; the federal government's assumption of state debts started during the Washington administration to ensure all debts were paid and to establish the United States' credibility with foreign creditors.

Step-by-step explanation:

The statement that the federal government will take all the debt across the country, instead of each state having to pay specific debts, and then control all the debt repayments, is generally true. This practice began during the Washington administration when there was a clear need to pay both foreign and domestic debts. The decision to assume state debts by the federal government was contentious, with some leaders arguing that it would be unfair to states that had already paid their obligations, while others believed it would create a strong credit reputation for the United States and signal to foreign creditors that the country was serious about honoring its debts.

User Jeemin
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