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QuizMultiple Choice

Fiscal Policy: Spending

Question 1 • IL-Economics

Spending that is required by law is known as

Answer
d
discretionary spending.
d
deficit spending.
m
mandatory spending.
e
expansionary spending.

Explanation

Spending required by law is called mandatory spending. It includes programs such as Social Security and Medicare, where the government must provide funds under existing laws. Discretionary spending, by contrast, is decided through the annual budget process.

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