Needs−tested spending is best described as
A.
spending on programs that are considered necessities (needed) according to surveys of the public.
B.
spending on programs that entitle qualified persons and businesses to receive benefits.
C.
spending on programs that have proven over time to be sound investments.
D.
spending on programs that have been tested in some manner.
E.
not spending at all but a reference to the reliability of budget.
Answer
B.
spending on programs that entitle qualified persons and businesses to receive benefits.
These are the benefits that vary with need and with the state of the economy and are known to decrease the multiplier effects of changes in autonomous expenditure
Explanation
Needs-Tested Spending/Induced Transfer Payments is considered to be a type of spending on programs that entitle suitably qualified people and businesses to receive benefits-benefits that vary with need and with the state of the economy which is contrary to the means tested” programs which are only available to those whose incomes are judged sufficiently low
