The average level of expected future income is
A) net income.
B) after-tax income.
C) permanent income.
D) disposable income.

Question

Quizplus · Accepted Answer

The average level of expected future income refers to permanent income, which is an individual’s anticipated average level of income over a long period of time. It represents the sustainable level of consumption that an individual can maintain over their lifetime. Therefore, permanent income is the best choice for this question. Net income, after-tax income, and disposable income are not appropriate choices for expected future income as they are all measures of current income.

The Average Level of Expected Future Income Is