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Vianca Agustin
on Oct 13, 2024

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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.
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Shaira Pearl MesinaOct 17, 2024
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