Discretionary Spending Is a Shrinking Part of the Federal Budget

question 60

Multiple Choice

Discretionary spending is a shrinking part of the federal budget.What is a possible consequence to this development?

• A) Politicians will have more control over spending,increasing favoritism and corruption in Congress.
• B) Income assistance programs will eventually have revenue shortfalls and be unable to fulfill their obligations.
• C) There will be more competition for public works and infrastructure projects.
• D) The federal government will be forced to lapse on interest payments,reducing the overall creditworthiness of the United States.
• E) State and local governments will eventually assume discretionary spending responsibilities.

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Definitions:

Credit Sales

Sales made by a business on credit, allowing customers to pay at a later date.

Receivables

Money owed to a company by its customers for goods or services that have been delivered or sold but not yet paid for.

Collection Procedures

Established methods used by businesses to follow up on and collect unpaid debts from customers.

Accounts Receivable

Amounts owed to a company by its customers for goods or services that have been delivered but not yet paid for.