5
lesson pretestMultiple Choice

Pretest

Question 5 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Spending that is required by law is known as

Answer
A
discretionary spending.
B
expansionary spending.
C
mandatory 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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