The Embargo Act of 1807 had which of the following effects on the United States?

• A. It caused a major decrease in government revenue from tariffs.
• B. It significantly reduced American exports and hurt the domestic economy.
• C. It resulted in the immediate end of the Napoleonic Wars.
• D. It led to a rapid increase in foreign trade with Britain and France.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the context of the Embargo Act of 1807, which was a U.S. law that prohibited American ships from trading in all foreign ports, aiming to pressure Britain and France during the Napoleonic Wars.
2. Step 2: Analyze the economic impact of the embargo on American exports by recognizing that restricting trade would reduce the volume of goods the U.S. could sell abroad.
3. Step 3: Consider the effect on government revenue, particularly from tariffs, which are taxes on imports and exports; a decrease in trade typically leads to lower tariff revenue.
4. Step 4: Evaluate the broader impact on the domestic economy, including industries reliant on exports and imports, which would likely suffer due to the trade restrictions.
5. Step 5: Rule out options inconsistent with historical facts, such as the embargo causing an immediate end to the Napoleonic Wars or increasing foreign trade, which contradict the purpose and effect of the embargo.