Disposable income is equal to
A) consumption expenditure minus taxes plus transfer payments.
B) aggregate income minus taxes plus government expenditures on goods and services.
C) aggregate income minus taxes plus transfer payments.
D) aggregate income plus transfer payments.
Correct Answer:
Verified
Q14: The components of aggregate expenditure include
I. imports.
II.
Q15: In the Keynesian model of aggregate expenditure,
Q16: The consumption function relates the consumption expenditure
Q17: Saving equals
A) disposable income minus taxes.
B) disposable
Q18: A consumption function shows a
A) negative (inverse)
Q20: If firms set prices and then keep
Q21: A movement along the consumption function is
Q22: As disposable income increases, consumption expenditures
A) increase
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