31
QuizMultiple Choice

Fiscal Policy: Spending — Quiz

Question 31 • Economics

Spending that is required by law is known as

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