That part of disposable income not spent on consumption is:
A) saved.
B) invested.
C) wasted.
D) borrowed.

Question

Quizplus · Accepted Answer

Disposable income is the income available to households or individuals after paying taxes and other mandatory charges. The part of disposable income that is not spent on consumption is saved. Therefore, option A is the correct answer. Option B is incorrect because investment implies that the money is being used to generate more income or wealth, which is not the case in this scenario. Option C is incorrect because wasting means using resources in an ineffective or unproductive manner, which is not applicable in this context. Option D is incorrect because borrowing implies that the individual is taking a loan or debt, which is not the case here.

That Part of Disposable Income Not Spent on Consumption Is