Disposable income is the income that households and businesses have remaining after satisfying their obligations to the government, such as taxes and other mandatory government fees. It is also known as after-tax income that consumers can freely use for savings or consumption.

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Disposable Income Is

Question 129

Multiple Choice

Disposable income is

A) the total income earned by a nation's permanent residents.
B) the total income earned by a nation's residents in the production of good and services.
C) the income that households and non-corporate businesses receive.
D) the income that households and businesses have remaining after satisfying their obligations to the government.

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