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The Principle of Diversity in the Financial Systems of American

Question 5

Multiple Choice

The principle of diversity in the financial systems of American federalism means that


A) the state government relies most heavily on property taxes for its revenues, whereas the other levels have their own primary revenue sources.
B) each level of government is, by tradition, free to rely as heavily as it must on any source of revenue.
C) each level of government is restricted by the U.S.Constitution as to how it may gather revenues.
D) the national government relies most heavily on the income tax for its revenues, whereas the other levels have their own primary revenue sources.

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