Which of the following illustrates the concept of fiscal federalism?
A. The national government of Nilkoma buying company shares and investing them in nation-building projects
B. The national government of Paplis borrowing funds from neighboring countries to finance its national policies
C. The national government of Yokojima delegating its states to carry out population control policies and allocating a portion of taxes collected to them
D. The national government of Gegvant creating a pooled-resources fund in order to raise money to carry out its day-to-day government functioning activities
E. The nation of Gargantua withdrawing from the economic union of which it has been a member for more than five decades
Answer: C
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