Look at the following data: personal income = $4,900 billion; personal taxes = $900 billion; transfer payments = $980 billion.What is disposable income?
A) $3,200 billion
B) $4,000 billion
C) $4,980 billion
D) $1,880 billion
E) There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

Disposable income is calculated as personal income minus personal taxes plus transfer payments. Therefore, disposable income = $4,900 billion - $900 billion + $980 billion = $4,980 billion - $900 billion = $4,080 billion. The closest answer provided is $4,000 billion.

Look at the Following Data: Personal Income = $4,900 Billion;