The basic tool in fiscal federalism is (Points : 1)
the federal government’s power of the purse.
the federal government’s ability to raise armies.
the federal government’s ability to sue states.
the Interstate Commerce Clause.
the federal government’s power of the purse
Right.
The basic tool in fiscal federalism is the federal government's power of the purse. To understand why this is the correct answer, it's important to first understand what fiscal federalism means.
Fiscal federalism refers to the division of financial responsibilities between different levels of government within a country, specifically in the context of federal systems such as that of the United States. In fiscal federalism, the federal government and state governments both have the power to tax and spend money.
The federal government's power of the purse refers to its authority to control the allocation and distribution of financial resources. This includes the ability to collect taxes, make budgetary decisions, and provide financial assistance to states. By having control over financial resources, the federal government can influence state policies and actions.
So, in the context of fiscal federalism, the federal government's power of the purse is the basic tool it uses to shape and control the financial interactions between itself and the states. Therefore, the correct answer to the question is: the federal government's power of the purse.