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They can either spend it (consumption) or they can put it into their bank account (saving)

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14y ago

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Related Questions

How to culculate personal income to disposable income?

Personal Income = Disposable Income + Personal Savings


Would personal income disposable income or discretionary income be of the greatest interest to marketers?

Discretionary income, not personal income or disposable income, would be the greatest interest to marketers.


To calculate disposable personal income you take personal income and subtract which of the following?

To calculate disposable personal income, you take personal income and subtract personal taxes. Disposable personal income represents the amount of money individuals have available for spending and saving after accounting for taxes. It reflects the income that can be used for consumption or saved for future use.


What is the difference between personal income and disposable income?

a


The consumption function relates the consumption expenditure decisions of households?

to the level of disposible income


To calculate disposable personal income you take personal income and subtract what?

individual income taxes


The average propensity to consume indicates this?

the fraction of total disposable income that households spend on consumption


What doese disposable income mean?

Disposable income refers to the amount of money individuals or households have left after taxes and necessary expenses, such as housing and food, are deducted from their total income. It represents the funds available for discretionary spending, savings, or investing. Essentially, it's the money people can use freely to enhance their quality of life or fulfill personal desires.


The amount of money a person has left of his or her income after taxes is called?

disposable personal income


What is the amount of money a person has left on his or her income after taxes called?

disposable personal income


What is the amount of money a person has left of his or her income after taxes called?

disposable personal income


What is the relationship between consumer spending and disposable personal income?

a direct relationship.