Compared with the federal government, the role of the state governments in shaping the country's political economy in the years before the Civil War was

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State governments had a significant role in shaping the political economy before the Civil War through policies such as internal improvements, banking regulations, and tariffs. They also had the power to make decisions about slavery within their own borders, which had a major impact on the economy. This allowed for a diversity of economic policies across the country and contributed to the sectional tensions that ultimately led to the Civil War.

Compared with the Federal Government, the Role of the State