Which Statement Regarding Discretionary and Mandatory Spending Is Correct

question 89

Multiple Choice

Which statement regarding discretionary and mandatory spending is correct?

• A) Discretionary spending is authorized by permanent laws.
• B) Mandatory spending may act as an automatic stabilizing force in the macro economy.
• C) Discretionary spending has steadily grown as a percentage of the federal budget since the 1960s.
• D) Mandatory spending programs include national defense, income security, and education.

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Definitions:

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business.

Book Value

The net value of a company's assets minus its liabilities, essentially the equity value as shown on the balance sheet.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Dividend Per Share

A measure of the total dividends declared in a period divided by the number of outstanding ordinary shares.