Question

Discretionary spending:

a. is the difference between what a consumer spends and what the consumer saves.
c. results in a balanced budget when the economy reaches full employment.
b. is spending which requires governmental approval on an annual basis.
d. is the amount left over for purchases of capital goods.

Answer 1

Discretionary spending B. IS SPENDING WHICH REQUIRES GOVERNMENTAL APPROVAL ON AN ANNUAL BASIS.

The government approval required is through its appropriations bill. It is an optional part of fiscal policy.

In an individual's point of view, discretionary spending is money spent on non-essential purchases, these purchases are based on what they want not on what they need.