Which of the following is an example of government discretionary spending?
A) Social Security retirement payments
B) Medicare benefits for the elderly
C) defense spending
D) net interest paid on government debt held by the public

Question

Quizplus · Accepted Answer

Government discretionary spending refers to the portion of the federal budget that can be altered through appropriations bills. Defense spending is an example of discretionary spending because Congress can choose how much money to allocate towards it each year. Social Security retirement payments and Medicare benefits are mandatory spending programs, meaning their funding levels are determined by legislation and cannot be altered through appropriations. Net interest paid on government debt held by the public is also mandatory spending because it is driven by interest rates and the amount of debt outstanding, rather than by Congress's appropriations decisions.

Which of the Following Is an Example of Government Discretionary