The terms “fiscal federalism” and “cooperative federalism” refer to situations in which
A. the federal government completely dominates state governments
B. states are forbidden any activity that has not been specifically approved by the Supreme Court
C. the federal judiciary uses its powers of judicial review to ensure congressional dominance over state legislatures
D. state, municipal, and local income taxes are pooled by special agreement and redistributed in accordance with individual need
E. federal, state, and local governments work together to complete a project, with the federal government providing much of the needed funding
Answer: E
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