Disposable income is defined as
A) Y - C.
B) Y - T.
C) C - T.
D) I - C.
E) Y - I.

Question

Quizplus · Accepted Answer

Disposable income is the income that households have available after paying taxes. Therefore, it is the difference between income (Y) and taxes (T), represented by option B. Option A represents national savings, option C represents government savings, option D represents private investment, and option E represents national income minus investment.

Disposable Income Is Defined as