The part of the disposable income that is not consumed by households is:
A)given away in the form of taxes.
B)given away as charity.
C)saved.
D)deducted as a depreciation cost.
E)spent on imports.

Question

Quizplus · Accepted Answer

The part of disposable income that is not consumed by households can be saved for future consumption or investment. Therefore, option C - "saved" is the correct choice. The other options, such as taxes (A), charity (B), depreciation cost (D), and imports (E) do not necessarily represent the part of disposable income that is not consumed by households.

The Part of the Disposable Income That Is Not Consumed