Disposable personal income:
A)is computed by subtracting personal tax and nontax payments from personal income.
B)is generally greater than personal income.
C)includes corporate profits but not dividends.
D)does not include government transfers to individuals.

Question

Quizplus · Accepted Answer

Disposable personal income is computed by subtracting personal taxes and nontax payments from personal income. It represents the amount of income that households have available to spend or save after they have paid their taxes and other mandatory payments.

Disposable Personal Income