Which of the following describes the relationship among income,disposable income,taxes,and transfer payments?
A) Taxes plus transfers equal income plus disposable income
B) Disposable income equals income divided by the sum of taxes and transfers
C) Disposable income equals income minus taxes plus transfers
D) Disposable income equals income plus taxes plus transfers
E) Taxes plus transfers equal disposable income minus income.

Question

Quizplus · Accepted Answer

Disposable income is the income that households have available to spend or save after taxes and transfers from the government are taken out. Therefore, disposable income equals income minus taxes plus transfers.

Which of the Following Describes the Relationship Among Income,disposable Income,taxes,and