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 refers to the money that a household has available after all necessary expenses (such as rent/mortgage, bills, groceries, etc.) have been paid. It is the amount that can be spent or saved at the discretion of the household, over and above what is required for a comfortable standard of living.

Which Is the Best Description of Discretionary Income