4055EconomicsMedium
What is fiscal federalism?
AA fiscal system in which fiscal policy is jointly determined by local and national politicians
BA fiscal system for a group of countries in which fiscal policy is set in a treaty signed by all the countries
CA fiscal system for a group of countries in which government budget deficits are strictly limited
DA fiscal system for a group of countries involving a common fiscal budget and a system of taxes and fiscal transfers across countries
Correct answer
D. A fiscal system for a group of countries involving a common fiscal budget and a system of taxes and fiscal transfers across countries
Explanation
The correct answer is A fiscal system for a group of countries involving a common fiscal budget and a system of taxes and fiscal transfers across countries.