Which of the Following Is an Example of Fiscal Federalism

question 51

Multiple Choice

Which of the following is an example of fiscal federalism?

• A) The national government threatens to tax state governments to steer them toward accepting a desired federal policy.
• B) The national government issues federal funds to state governments to encourage states to meet certain policy requirements.
• C) The national government requires states to increase taxes to meet federal mandates.
• D) The national government lends money to the states on a temporary basis.
• E) The national government runs a deficit by spending more money than it takes in from taxpayers.

---

Definitions:

Matching

An accounting principle where expenses are recorded in the period they are incurred to generate revenues.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

LIFO

A method of inventory valuation called "Last-In, First-Out," where the most recently acquired items are the first to be expensed.