Disposable income is
A) the major determinant of consumption spending
B) total salary and wage income minus taxes and transfer payments
C) the income households earn before taxes
D) aggregate income plus taxes minus transfer payments
E) a measure of income that is equivalent to GDP
Correct Answer:
Verified
Q1: If disposable income decreases,there is typically a
Q3: If disposable income increases,consumption spending increases and
Q3: The difference between consumption spending and disposable
Q4: Saving in our simple model
A)varies inversely with
Q5: An increase in the interest rate would
Q6: The primary determinant of saving is income.
Q7: Historically,consumption spending in the United States has
A)increased
Q8: Sarah moves from Upperland,which has no taxes
Q10: The most important determinant of a household's
Q123: If consumption is greater than income,saving must
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