Question

Private disposable income equals

a) gnp - taxes transfers interest.
b) nnp - taxes transfers interest.
c) national income - taxes transfers interest.
d) national income - taxes - transfers interest.

Answer 1

Private disposable income is calculated by subtracting taxes paid by households to the government and adding transfers received by households from the government to personal income.

Step-by-step explanation:

Private disposable income is what remains after subtracting taxes paid by households to the government and adding transfers received by households from the government to personal income. Therefore, the correct option is (c) national income - taxes transfers interest.