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Which of the Following Statements Is True

question 6

Multiple Choice

Which of the following statements is true?


Definitions:

Disposable Income

The sum of funds a family can use for expenditures and savings once income taxes are deducted.

APC

Average Propensity to Consume (APC) is a measure of the fraction of income spent on consumption rather than saving in an economy.

Disposable Income

Discretionary income for households to utilize in their saving and spending after the enforcement of income taxes.

Consumption

Refers to the use of goods and services by households or individuals for personal needs or for leisure, as opposed to investment or savings.

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