14
QuizMultiple Choice

Fiscal Policy: Spending — Quiz

Question 14 • Economics

Spending that is required by law is known as

Answer
A
mandatory spending.
B
discretionary spending.
C
expansionary spending.
D
deficit spending.

Explanation

Spending required by law is called mandatory spending. The government must provide funding for these programs under existing laws, such as Social Security and Medicare. Discretionary spending, by contrast, is decided through the annual budget process.

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