An Increase in Disposable Income

question 271

Multiple Choice

An increase in disposable income

• A) shifts the saving function upward.
• B) results in a movement upward along the saving function.
• C) shifts the saving function downward.
• D) results in a movement downward along the saving function.

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Definitions:

Additional Revenues

Income received by a business or organization that is supplementary to its primary revenue sources, often from non-core business activities.

Retirement Savings Contributions Credit

A tax credit available to lower-income individuals making contributions to retirement accounts, encouraging savings.

Income Level

A measure of an individual or household's gross income before taxes and deductions.

Credit

A direct reduction of the tax owed to the government, distinct from deductions, which reduce the amount of income subject to tax.