The portion of after-tax income a consumer does not spend on consumption is called
A) investment.
B) saving.
C) supply.
D) temporary income.

Question

Quizplus · Accepted Answer

Saving refers to the portion of after-tax income that a consumer saves or does not spend on consumption. A is incorrect because investment refers to using money to acquire assets or goods that are expected to increase in value. C is incorrect because supply refers to the quantity of goods or services that producers are willing to offer for sale at a certain price. D is incorrect because temporary income is not a term used to describe the portion of after-tax income that a consumer saves.

The Portion of After-Tax Income a Consumer Does Not Spend