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.

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how much one event resembles another.

Stereotypes

Oversimplified, generalized ideas about a group of people that often lead to prejudiced attitudes or behavior.

Phonemes

Phonemes are the smallest units of sound in a language that can distinguish one word from another, such as the distinction between the consonant sounds in "pad" and "bad."

Emotion

Complex psychological states involving thoughts, feelings, physiological changes, and behaviors.