Personal Disposable income is money that is available for household
consumption,__________ and spending after accounting for income tax.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. savings
- The amount of money left over after income taxes is deducted for household consumption, savings, and expenditures is referred to as disposable income, or disposable personal income in economics.
- When assessing the demand in an economy, economists use this crucial metric.
- It is also employed to assess the general health of the national economy.
- Personal income less personal income taxes equals disposable income.