Which of the Following Is True of the Disposable Income

question 80

Multiple Choice

Which of the following is true of the disposable income of the households?

• A) An increase in the average price level lowers the disposable income of the households.
• B) Disposable income refers to the purchasing power of nominal income.
• C) An increase in direct taxes will lower the disposable income of the households.
• D) A decrease in government transfers will increase the disposable income of the households.
• E) Disposable income refers to the net private transfers of the household sector.

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Definitions:

Liquidated Equipment

Assets or equipment that have been sold off, typically for the purpose of repaying debt or raising funds.

Maintenance Records

Documentation of all the repairs, upkeep, and inspections carried out on equipment or property to ensure it remains in good working condition.

Common-value Auction

A bidding process where the item's true value is identical across all participants, though individual bidder estimates of this value may vary.

Exact Value

The precise numerical amount or measurement of an item, without approximation or rounding.