Question

Which of the following is NOT a category in the Federal government's spending?

1) Mandatory spending
2) Discretionary spending
3) Interest on loans issued
4) Interest on national debt

Answer 1

Interest on loans issued is NOT a category in the Federal government's spending. So, the correct answer is option 3.

Step-by-step explanation:

Interest on loans issued is NOT a category in the Federal government's spending. The categories in the Federal government's spending are mandatory spending, discretionary spending, and interest on national debt. Mandatory spending refers to federal spending that is based on the cost of existing laws, while discretionary spending can vary from year to year. Interest on national debt refers to the amount of money the government pays on its debt.

So, the correct answer is option 3.