Which is the best description of discretionary income?
A) money that the household saves for emergencies and does not spend
B) the money available to a household after tax
C) the total gross income the household has earned
D) the money available to a household over and above that required for a comfortable standard of living

Question

Quizplus · Accepted Answer

Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities (like food, shelter, and clothing) have been paid. It refers to the money that is available for non-essential purchases and leisure activities.

Which Is the Best Description of Discretionary Income