Asked by
Dominique Likus
on Oct 13, 2024Verified
Savings plus consumption equals disposable income
A) all of the time
B) most of the time
C) rarely
D) never
Savings
Funds that are set aside for future use rather than being spent immediately, often placed in accounts that earn interest.
Consumption
The use of goods and services by households or individuals, typically referring to the final use that directly satisfies human needs or wants.
Disposable Income
Money freed up for households to allocate towards savings and spending after income tax removal.
- Understand the relationship between disposable income, consumption, and savings.
Verified Answer
DC
Learning Objectives
- Understand the relationship between disposable income, consumption, and savings.