A system of government in which fundamental governmental powers are shared between the federal and state governments and in which the states exercise the most important powers is known as

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Dual federalism, also known as layer cake federalism, is a system of government in which the powers and responsibilities of the federal and state governments are clearly defined and separate from one another. In this system, the federal and state governments each have their own specific powers and responsibilities, with little overlap or sharing of authority. Dual federalism was the dominant form of federalism in the United States until the 1930s, when the New Deal program of the federal government led to an expansion of federal power and a shift towards cooperative federalism.

A System of Government in Which Fundamental Governmental Powers Are