If Personal Saving Is -$10 Billion and Disposable Personal Income

question 175

Multiple Choice

If personal saving is -$10 billion and disposable personal income is $370 billion, then personal consumption spending

• A) is $360 billion.
• B) is $380 billion.
• C) is $390 billion.
• D) cannot be determined from this information.

---

Definitions:

Sales and Excise Taxes

Taxes imposed on the sale of specific goods (excise) and on a broad range of products at the point of sale (sales), used by governments to raise revenue, potentially influence consumer behavior, and fund public goods and services.

Transfer Payment

Payment by one branch of government to another or to an individual. Largest transfer payment is Social Security.

Aid to Families

Programs providing financial or other assistance to families, often targeting housing, healthcare, or income support.

Dependent Children

Individuals, typically under the age of 18, who rely on adults for financial support and care.