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Fiscal Policy: Taxes

Question 18 • * HSA 26-27 Economics

A local government’s budget is drafted by the . It is then submitted to the for approval. Unlike state governments, which can use a(n) , local governments typically reject or approve a budget as a whole.

Answer
A
appropriations bill
B
line-item veto
C
exemption

Explanation

The key contrast is that a line-item veto lets an executive reject specific parts of a budget while approving the rest. The sentence says local governments typically approve or reject the budget as a whole, unlike state governments that can use this tool. Therefore, the correct choice is “line-item veto.”

AI-written and checked against the verified answer.

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