Needs-Tested Spending

question 136

Multiple Choice

Needs-tested spending

• A)increases in recessions and decreases in expansions.
• B)decreases in recessions and increases in expansions.
• C)does not change with the level of economic activity.
• D)is always increasing regardless of whether we are in an expansion or a recession.
• E)cannot be changed unless the government changes the spending laws.

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Definitions:

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and investments.

Investing Activities

Transactions involving the acquisition or disposal of non-current assets like property, plant, and equipment, or securities, which are part of a company’s cash flow statement.

Cash Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.