Asked by
Vianca Agustin
on Oct 13, 2024Verified
At very low levels of disposable income,
A) consumption is greater than disposable income.
B) disposable income is greater than consumption.
C) people save most of their incomes.
D) consumption is negative.
Disposable Income
Funds households can allocate for spending and saving purposes after income taxes are subtracted.
Consumption
The use of goods and services by households, representing the end-use of products and services in an economy.
- Discerning the role of disposable income in shaping decisions related to consumption and saving activities.
Verified Answer
SP
Learning Objectives
- Discerning the role of disposable income in shaping decisions related to consumption and saving activities.