Net disposable income (NDI) is equal to:

Question

Quizplus · Accepted Answer

Net disposable income (NDI) is defined as the amount of income that households and individuals have available for spending, saving, and investing after paying taxes and receiving government transfers. It is calculated as NNP (Net National Product) minus any transfer payments overseas. Therefore, option C is correct. Option A is incorrect because transfer payments overseas should be added to GDP to arrive at NNP. Option B is incorrect because depreciation should be subtracted from NNP to arrive at NDP (Net Domestic Product) and NDI is calculated based on NNP. Option D is incorrect because NDI formula does not involve imports or Gross National Expenditure (GNE).

Net Disposable Income (NDI) Is Equal To