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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