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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