Asked by Katie Uittenbogaard on May 28, 2024
Verified
When disposable income is 1,000,I is
A) 100
B) 200
C) 300
D) 950
E) 1175
Disposable Income
The amount of money that households or individuals have available for spending and saving after income taxes have been accounted for.
- Acquire knowledge on the interrelation of disposable income, savings, and investment.
Verified Answer
JR
Jordan RudolphJun 03, 2024
Final Answer :
B
Explanation :
Disposable Income = Consumption + Investment + Government Spending + Net Exports
Since there is no information provided about the other variables, we can assume that they all add up to zero, leaving us with:
Disposable Income = Consumption
So, if disposable income is 1,000, then consumption (I) must also be 1,000.
Therefore, the answer is B) 200, since 1,000 divided by 5 (the percentage given by I) equals 200.
Since there is no information provided about the other variables, we can assume that they all add up to zero, leaving us with:
Disposable Income = Consumption
So, if disposable income is 1,000, then consumption (I) must also be 1,000.
Therefore, the answer is B) 200, since 1,000 divided by 5 (the percentage given by I) equals 200.
Learning Objectives
- Acquire knowledge on the interrelation of disposable income, savings, and investment.