Carl and Nancy Johnson prepared a household budget in an attempt to manage their money better.As part of their budgeting process,Carl and Nancy prepared the following list: Monthly Income (after taxes)= $4,500;Monthly Expenses (Necessities),which include Rent: $550,Auto Loan: $250,Student Loan: $200,Savings: $500,Food: $200;Total Monthly Expenses = $1,700;Amount Left Over = $2,800.After totaling their necessary expenses,which equals $1,700,Carl and Nancy subtracted that amount from their monthly income of $4,500.The Johnsons were happy to realize that they had $2,800 left over,which is their __________.
A)gross income
B)personal income
C)disposable income
D)discretionary income
E)profit

Question

Quizplus · Accepted Answer

The amount left over after paying for necessary expenses is considered discretionary income, which is the money left over for the Johnsons to use at their discretion, for things like entertainment, clothing, and hobbies.

Carl and Nancy Johnson Prepared a Household Budget in an Attempt