If You Are Estimating the Amount You Plan to Spend

question 280

Multiple Choice

If you are estimating the amount you plan to spend on a vacation, money is serving as a:

• A) unit of account.
• B) store of value.
• C) standard value.
• D) medium of exchange.

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Definitions:

Consumption

The act of using goods and services to satisfy needs and desires, often considered a primary component of an economy's activity.

Disposable Income

The funds left for households to manage spending and saving after income tax calculations.

Consumption

The part of personal income that is spent on goods and services rather than saved, influencing economic activity and demand.

Savings

The portion of income not spent on current expenditures or taxes, which is set aside for future use or investment.