Increases in discretionary income can occur as a result of all of the following EXCEPT:
A) an increase in gross income.
B) a decrease in taxes.
C) an increase in disposable income.
D) an increase in savings.
E) a decline in inflation.

Question

Quizplus · Accepted Answer

An increase in savings does not lead to an increase in discretionary income, as discretionary income is the income that remains after paying for necessary expenses (including savings). Increasing savings actually decreases the available discretionary income. Therefore, all other options (A, B, C, and E) can result in an increase in discretionary income.

Increases in Discretionary Income Can Occur as a Result of All