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Figure 16.11
Using the figure above, identify the labeled structure(s) in each of the following questions.
-Identify the structure indicated by Label H.
Saving
The portion of income not spent on consumption but kept aside for future use, which may be invested to generate wealth.
Disposable Income
The amount households can devote to saving and spending once income taxes have been factored in.
Savings
The portion of disposable income not spent on consumption of consumer goods but accumulated or invested.
Disposable Income
The financial surplus households hold for spending and saving after income taxes have been applied.
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