Asked by stanley owuama on Jul 30, 2024
Verified
When disposable income is 1,000,Savings is
A) -100
B) 0
C) 50
D) 275
Disposable Income
Households' financial resources for expenditure and savings following income tax deductions.
Savings
Money set aside for future use rather than spent immediately.
- Ascertain the link between income after taxes and the accumulation of savings.
Verified Answer
AT
Angel ToussaintJul 30, 2024
Final Answer :
C
Explanation :
To calculate savings, we need to use the formula: Savings = Disposable Income - Total Expenses.
Since there is no information given about the total expenses, we assume that it is 950 (i.e. disposable income of 1000 minus savings of 50).
Therefore, Savings = 1000 - 950 = 50.
Option C) 50 is the correct answer.
Since there is no information given about the total expenses, we assume that it is 950 (i.e. disposable income of 1000 minus savings of 50).
Therefore, Savings = 1000 - 950 = 50.
Option C) 50 is the correct answer.
Learning Objectives
- Ascertain the link between income after taxes and the accumulation of savings.