What Is Fiscal Federalism

Multiple Choice

What is fiscal federalism?

A) A fiscal system for a group of countries in which fiscal policy is set in a treaty signed by all the countries.
B) A fiscal system for a group of countries in which government budget deficits are strictly limited.
C) A fiscal system for a group of countries involving a common fiscal budget and a system of taxes and fiscal transfers across countries.
D) A fiscal system in which fiscal policy is jointly determined by local and national politicians.
E) A fiscal system for a group of countries in which fiscal policy is set by the central bank.