Which is true of disposable income?
A)it excludes transfer payments
B)the portion of income is used solely for consumption
C)it is that part of aggregate income that is taken in taxes by government
D)all of disposable income contributes directly to aggregate expenditure
E)disposable income equals consumption expenditures plus saving

Question

Quizplus · Accepted Answer

Disposable income is the portion of income that remains after taxes and other mandatory deductions have been taken out. This remaining income can either be used for consumption or saving. Therefore, disposable income equals consumption expenditures plus saving.

Which Is True of Disposable Income