lest: Exam #3 Time Remaining This Question: 5 pts 30f 20 (2 complete) This The d

Question

lest: Exam #3 Time Remaining This Question: 5 pts 30f 20 (2 complete) This The difference between personal income and disposable personal income is that A personal income does not include transfer pay ments, such as Social Security payments or welfare payments and disposable sonal income includes them. O B. personal income taxes are not included in disposable personal income. C. personal income includes personal income taxes and indirect business taxes, which are not included in disposable pevdal ioone. D. disposable personal income includes only the funds avalable to spend on nonnecesstes. Click to select your answer

Explanation / Answer

Ans. B

Disposable income is by definition personal income after deducting income taxes. It is the amount left for the individual to spend, invest or save after the taxes have been paid. Therefore option B seems most apt.

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