Which of the following statements is true?

Question

Quizplus · Accepted Answer

Transfer payments, such as Social Security or unemployment benefits, are a type of government support that directly affects disposable income. A decrease in transfer payments would reduce disposable income. The other statements are false. A change in sales tax affects disposable income as it is a deduction from income. Interest and dividend payments are included in disposable income as they add to income. Household consumption is sensitive to changes in disposable income as people tend to spend more when they have more disposable income.

Which of the Following Statements Is True