Q.

Personal disposable income is :

A. always equal to personal income.
B. always more than personal income.
C. equal to personal income minus direct taxes paid by household.
D. equal to personal income minus indirect taxes.
Answer» C. equal to personal income minus direct taxes paid by household.
Explanation: Disposable income is total personal income minus personal current taxes. In national accounts definitions, personal income, minus personal current taxes equals disposable personal income. Subtracting personal outlays (which includes the major category of personal(or, private) consumption expenditure) yields personal (or, private) savings
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