Final answer:
A hanging indent is the setting that indents the text a certain number of spaces or inches from the left margin.
Step-by-step explanation:
The setting that places the subsequent text on that line a certain number of spaces or inches in from the left margin is called a hanging indent. This formatting style is commonly used in an annotated bibliography, where you indent the entire annotation in the same manner as the source citation after the first line. In Microsoft Word and most word processing programs, you can create a hanging indent by highlighting the citation and annotation paragraphs and then choosing 'Hanging' from the 'Special' options in the Indentation section of the Paragraph menu.