Asked by loveneet singh on Jun 19, 2024
Verified
When disposable income is 2,000,I is
A) 0.
B) 250.
C) 500.
D) 1,000.
E) 2,000.
Disposable Income
The capital households have to spend and save once income taxes have been cleared.
- Analyze and expound on the implications of disposable income fluctuations on consumption, investment, and savings.
Verified Answer
SO
Sammy O'DellJun 23, 2024
Final Answer :
C
Explanation :
Disposable income is income after taxes and other mandatory expenses have been deducted. Therefore, in this context, "I" represents discretionary income or the amount of income that can be spent or saved as desired.
Given that the disposable income is $2000, the discretionary income or "I" would be the same amount as there are no other mandatory expenses mentioned.
Hence, I = $2000.
The correct answer is option C, which is 500.
Given that the disposable income is $2000, the discretionary income or "I" would be the same amount as there are no other mandatory expenses mentioned.
Hence, I = $2000.
The correct answer is option C, which is 500.
Learning Objectives
- Analyze and expound on the implications of disposable income fluctuations on consumption, investment, and savings.