Why Are State and Local Governments Unable to Carry Large

question 5

Multiple Choice

Why are state and local governments unable to carry large levels of debt?

• A) They are constrained by their economic capacity to service their debt.
• B) They cannot levy income taxes.
• C) They all have upper limit restrictions on the rate at which they can tax.
• D) Federal legislation prohibits it, because federal funds will ultimately have to finance a state or municipal bail out.

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Definitions:

Central-Route Processing

Type of information processing that involves attending to the content of the message itself.

Cognitive Component

An aspect of our mental processes and attitudes, involving beliefs, thoughts, and awareness that contribute to our perceptions and reactions.

Informational

Related to the provision or exchange of facts or data, often used for educational, advisory, or decision-making purposes.

Peripheral-Route Processing

A mode of persuasion in which an individual is influenced by superficial clues, such as the attractiveness of the speaker or emotional appeal, rather than by the argument’s actual content.