Final answer:
Fiscal Federalism is the term for the pattern of spending, taxing, and providing grants in the federal system, influencing state laws and policies through fiscal policy.
Step-by-step explanation:
The pattern of spending, taxing, and providing grants in the federal system is called fiscal federalism. This involves the federal government using its monetary power to influence states in areas such as national defense, Social Security, healthcare, and transportation. Federal spending as a share of GDP has fluctuated between about 18% to 22% over recent decades, while state spending has increased to about 20% of GDP. Fiscal policy, which includes budget deficits and surpluses, ultimately contributes to the national government debt.