Which of the Following Statements Is True Regarding the Ratio

question 17

Multiple Choice

Which of the following statements is true regarding the ratio analysis of Nondiscretionary Expenditures to Total Expenditures?

• A)The higher the percentage of nondiscretionary expenditures, the less flexibility the government has to reduce (or limit increases in)spending.
• B)The higher the percentage of nondiscretionary expenditures, the more flexibility the government has to reduce (or limit increases in)spending.
• C)The lower the percentage of nondiscretionary expenditures, the less flexibility the government has to reduce (or limit increases in)spending.
• D)The higher the percentage of nondiscretionary expenditures, the less flexibility the government has to increase spending.

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Definitions:

Reaction

A process in which substances interact, causing the formation of new substances with different properties.