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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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