Which of the following is a key difference between disposable income and discretionary income?
A)Discretionary income refers to the after-tax income, whereas disposable income refers to the before-tax income.
B)Unlike disposable income, discretionary income is used to pay for food and clothing.
C)Discretionary income will always be more than disposable income.
D)Unlike disposable income, discretionary income is used only for purchases that are not deemed a necessity.

Question

Quizplus · Accepted Answer

Discretionary income is the after-tax income a consumer has left after paying for necessities such as food, shelter, and clothing.This income is used for discretionary purchases that are not deemed a necessity.

Which of the Following Is a Key Difference Between Disposable