Which of the following might be the best predictor of saving within a county? A-National Income...
Which of the following might be the best predictor of saving within a county?
A-National Income
B- Persona Income
C-Disposable income
D-Retirement Income
Homework Answers
Answer c- disposable income
Disposable income = personal income - taxes
Disposable income is the ultimate income that a person can spend on the consumption goods according to prefernce and budget. Savings is a function of disposable income.
Yd = C + S
Based on the disposable income, people choose between savings and consumption.
Therefore, Disposable income income is the best predictor among the options.
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Which of the following might be the best predictor of saving
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