The part of disposable income not spent on current consumption is

Question

Quizplus · Accepted Answer

Disposable income is the income that households have after paying taxes and receiving government transfers. Saving is the portion of disposable income that is not spent on consumption and instead is set aside for future use. Therefore, the correct choice is A. Dissaving refers to when households spend more than their disposable income, and investment refers to the purchase of assets that are expected to generate income or appreciate in value. Social Security taxes are a mandatory payroll tax in the United States that provide retirement, disability, and survivor benefits to eligible recipients.

The Part of Disposable Income Not Spent on Current Consumption