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During the Seven Year's War France lost most of its overseas treasure to Great Britain. The resulting economic damage almost destroyed the monarchy. However, some of the economy was repaired in the 1760's by the minister, the duc de Choiseul.

Because Louis XIV and Louis XV spend way to much money and left a huge state debt. Louis XVI inherited that debt as he ascended the throne (a debt of 400 million livres.)

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Q: Why was Louis XVI's government deeply in debt?
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