Which formula is correct?
A) Yd = S + C
B) Yd + S = C
C) Yd × S = C
D) Yd + C = S

Question

Quizplus · Accepted Answer

Choice A is the correct formula for calculating disposable income (Yd), which is equal to savings (S) plus consumption (C). Option B is incorrect because it adds savings to disposable income instead of consumption. Option C is incorrect as it multiplies disposable income and savings, yielding a completely different result. Option D is incorrect because it adds consumption and savings to produce total income, which is not the same as disposable income.

Which Formula Is Correct