In a federal system of government, the federating component units derive their constitutional authority directly from the central government, which retains the legal right to alter their powers at will.
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Answer
False. Component units in a federal system derive their constitutional authority directly from a supreme written constitution, not from the central government.
The statement is false because in a federal system, the powers of federating units are constitutionally guaranteed and derived directly from a supreme written constitution. The central government has no legal right to unilaterally alter, withdraw, or diminish the powers of component units.
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Constitutional Source of Authority in Federalism