What Part of Federal Government Spending Has Grown the Most

question 13

Multiple Choice

What part of federal government spending has grown the most rapidly in recent years?

• A)national defense
• B)welfare
• C)interest on the national debt
• D)social security and Medicare
• E)all other forms of federal government spending

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Definitions:

Compounds Interest Continuously

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, assumed to be compounded infinitely often per period.

Nearest Tenth

Rounding a number to one decimal place, or to the closest tenth.

Compounded Continuously

Refers to the mathematical limit of the compound interest formula, as the number of compounding periods per year becomes infinitely large.

Annual Interest Rate

The percentage increase in money per year, including compounding, that an investment or loan grows.