The part of disposable income not spent on current consumption is

Question

Quizplus · Accepted Answer

Disposable income is the amount of income that households have available for spending and saving after taxes have been paid. When households choose not to spend all of their disposable income on current consumption, they can save the remaining amount. Therefore, the correct answer is A) Saving. The other options, B) Dissaving and C) Investment, do not accurately describe the part of disposable income not spent on current consumption. Dissaving occurs when households spend more than their disposable income, and investment refers to the purchase of goods that are expected to generate income or increase in value. D) Social Security taxes are a deduction from disposable income, not a part of it.

The Part of Disposable Income Not Spent on Current Consumption