Which of the following statements is TRUE?
A) consumption + saving = disposable income
B) consumption + saving = personal income
C) consumption - investment = disposable income
D) consumption - saving = personal income

Question

Quizplus · Accepted Answer

Consumption plus saving equals disposable income, as disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for. This is a fundamental concept in economics, indicating how individuals allocate their income towards consumption (spending on goods and services) and saving.

Which of the Following Statements Is TRUE