Consumers divide disposable income into
A) consumption and taxes.
B) saving and taxes.
C) consumption, saving, and taxes.
D) consumption and saving.

Question

Quizplus · Accepted Answer

Disposable income is typically divided into consumption (what they spend) and saving (what they save for future use). Taxes are not considered part of disposable income, as they are deducted before it is calculated.

Consumers Divide Disposable Income into