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    Question

    When taxes rise at a faster rate than does disposable

    income, what must consumers do?
    A economize Correct Answer Incorrect Answer
    B spend more Correct Answer Incorrect Answer
    C go on vacation Correct Answer Incorrect Answer
    D retire early Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Disposable income is the money a consumer has left after paying taxes to use for such necessities as food, shelter, clothing, and transportation.

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