Question

If income is $10 trillion, taxes are $3 trillion, and transfers are $2 trillion, then disposable income is $_____ trillion. Please choose the correct answer from the following choices. a) 5 b) 7 c) 9 d) 12

Answer 1

b) $ 7 trillion

Explanation:

The disposable income is defined as the amount of money that we have available for spending and saving after income taxes have been accounted for.

Then:

Disposable income= Income- Taxes= $10 trillion- $3 trillion = $7 trillion