Which of the Following Is True of the Challenges Faced

question 78

Multiple Choice

Which of the following is true of the challenges faced by state revenue and management systems?

• A)State and local governments do not vary greatly in their administrative capabilities.
• B)The federal government may attempt to reduce differences by giving larger federal grants-in-aid to low-fiscal capacity states.
• C)State spending on functions such as health care and social services is not affected by differences in their fiscal capacity.
• D)Higher incomes are associated with lower consumption and property values.
• E)State revenue systems are better at collecting taxes on services than on goods.

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Definitions:

Beta

A measure of a security's volatility in relation to the overall market, indicating the security's risk compared to the market average.

Sensitive

Quick to detect or respond to slight changes, signals, or influences.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, often used in finance to represent the volatility of an investment.

Correlation

A numeric value showing how much two or more variables change in connection with one another.