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In the USA it is Congress. They have to pass legislation to authorize the government to borrow more money (raise the debt ceiling). Indirectly the Federal Reserve and the market also put a cap on it since the ability to borrow depends on the interest rate that must be paid on any bonds issued by the government. Higher interest rates set by the Fed cause the interest rates that must be paid on government bonds to have to be higher to actually sell. The market also determines what interest rate will be required to sell all the bonds - the less demand there is for the bonds, the higher the interest rate has to be in order to make them attractive enough to sell and the better the yields on other potential investments, the higher the interest rates have to be in order to be sufficiently competitive. The higher the interest rates, the more difficult it is to get approval to borrow.
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A government borrowing money is an example of which type of power?
Concurrent Powers
The government creates income from which of these?
taxes
If a government wanted to expand its capital resources it could?
lower interest rates to make borrowing money easier.
A government creates an army Which purpose of government is it fulfilling?
Protection is the purpose of government served by military forces.
How does the principle of federalism affect the US government?
By dividing some responsibilities between the federal and state governments
