Which of the Following Is True of Disposable Income

question 57

Multiple Choice

Which of the following is true of disposable income?

• A) It excludes transfer payments.
• B) It is the portion of income that is used solely for consumption.
• C) It is the part of total earned income that is paid to the government in the form of taxes.
• D) It is the difference between income and saving.
• E) It equals consumption expenditures plus saving.

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Definitions:

Cohabitating Couples

Partners who live together in a shared dwelling without being formally married.

Married Couples

Two individuals joined in marriage, recognized legally, socially, or religiously, committed to a shared life together.

Entering Marriage

The act of beginning a legally and socially recognized union between two people, marking a significant life change.

Original Families

Refers to the traditional or initial familial groupings that influence personal development and cultural identity.