What Is Budgetary Slack and Why Is It an Issue

question 24

Essay

What is budgetary slack and why is it an issue in budget preparation?

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Definitions:

Savings

The portion of disposable income not spent on consumption of consumer goods but accumulated or invested.

Disposable Income

The financial surplus households hold for spending and saving after income taxes have been applied.

Savings

Money that is put aside for future use rather than spent immediately.

Suburban Lifestyle

A way of living that typically involves residing in outlying residential areas of cities, often characterized by single-family homes and emphasis on community and family life.