Net disposable income (NDI)is equal to:

Question

Quizplus · Accepted Answer

Net disposable income (NDI) is the income available to households and firms for spending or saving, and it is calculated as NNP (Net National Product) minus transfer payments overseas. Transfer payments are payments made by the government to individuals or institutions for which no goods or services are exchanged, such as welfare payments, social security benefits, or foreign aid. Subtracting transfer payments overseas from NNP gives us NDI, which represents the income available to domestic agents for consumption or investment. Therefore, Option C is the correct answer.

Net Disposable Income (NDI)is Equal To