Increases in Discretionary Income Can Occur as a Result of All

question 161

Multiple Choice

Increases in discretionary income can occur as a result of all of the following except

• A)an increase in gross income.
• B)a decrease in taxes.
• C)an increase in disposable income.
• D)a decrease in housing costs.
• E)an increase in interest rates.

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Definitions:

Interest Compounded

Interest compounded refers to the process where interest earned on an investment is reinvested to earn additional interest, leading to exponential growth in the investment's value.

Lump Sum

A one-time transaction occurring at a specific moment, rather than several installments spread out.

Years

A period of time consisting of 365 days (or 366 in a leap year), used as a standard unit of time to compare the duration of events or the intervals between them.