Identify each statement about Henry Clay's American System as being true or false.

The answer is:

a) It would impose a tariff on American-made goods.       False

b) It used tariff money to improve transportation infrastructure.     True

c) It eliminated the national bank.    False

Explanation:

The American System was an economic plan that played an important role in American policy and included such policies as:

a) As proposed under the American System, a protective tariff of 20 to 25 percent on imported goods, which encouraged consumers to buy less expensive American-made goods.    

b) Development of a system of internal improvements (such as roads and canals) which would knit the nation together and be financed by the tariff and land sales.

c) Preservation of the Bank of the United States to stabilize the currency and rein in risky state and local banks.

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