ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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disposable income
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discretionary income
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Either A or B
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None of the above
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Detailed explanation-1: -Disposable income is net income. It’s the amount left over after taxes. Discretionary income is the amount of net income remaining after all necessities are covered. Economists monitor these numbers at a macro level to see how consumers save, spend, and borrow.
Detailed explanation-2: -What is Disposable Personal Income? After-tax income. The amount that U.S. residents have left to spend or save after paying taxes is important not just to individuals but to the whole economy. The formula is simple: personal income minus personal current taxes.
Detailed explanation-3: -Disposable income is the money you have left from your income after you pay taxes. It’s calculated using the following simple formula: disposable income = personal income – personal current taxes.
Detailed explanation-4: -Disposable income formula and example Here’s the formula for calculating your disposable income is. If you earn $1, 500 every two weeks, and your employer deducts $230 for taxes, your disposable income would be $1, 270. Your withholdings might differ for state or local taxes withheld.
Detailed explanation-5: -Net National Disposable Income = National Income + Net Indirect Taxes + Net Current Transfers from Rest of the World.