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← The Invention of Government Debt
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Question
Why was the development of long-term, tradeable government bonds a decisive military advantage?
1
It allowed governments to pay soldiers in paper rather than coin
2
It forced enemy states to adopt the same system, equalising the advantage
3
It eliminated the need for taxation during wartime
4
It dramatically reduced borrowing costs, allowing states to sustain wars that short-term borrowing could not fund
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