Answered: Define disposable income

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Economics

Define disposable income

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 9QP

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Disposable income is the amount a household has A after subtracting autonomous spending. B after subtracting taxes and transfer payments to income. C sometimes called discretionary spending. D available for consumption spending and saving.
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Which of the following is true of disposable income? Group of answer choices It excludes transfer payments. It is the portion of income that is used solely for consumption. It is the part of total earned income that is paid to the government in the form of taxes. It is the difference between income and saving. It equals consumption expenditures plus saving
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