What Is the Relationship Between Household Saving and Taxes

question 148

Multiple Choice

What is the relationship between household saving and taxes?

• A) taxes = income - consumption - household saving
• B) household saving = income + taxes - consumption
• C) taxes = income + consumption + household saving
• D) household saving = consumption + income - taxes
• E) taxes = household saving - income + consumption

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Definitions:

Family Wealth

The total value of all financial and non-financial assets owned by members of a family unit, minus any debts.

Wealth Increase

The growth in the value of an individual's or entity's assets and financial resources, leading to an improvement in their financial condition and potential standard of living.

Absolute Poverty

A condition where individuals lack the basic means of survival, such as food, clean water, and shelter.

Relative Poverty

A condition where individuals lack the minimum amount of income needed in comparison to the average standard of living in their society.