3.5 - Disposable Income (DI)
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Practice Questions
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What is Disposable Income?
💡 Hint: Think about what you would have left if you paid all necessary taxes.
How is Disposable Income calculated?
💡 Hint: Consider what takes away from your gross income.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is Disposable Income?
💡 Hint: It’s what you can spend or save after paying taxes.
True or False: Higher Disposable Income generally leads to lower savings rates.
💡 Hint: Remember how higher income affects the ability to save.
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Challenge Problems
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Scenario: A community implements a new tax reducing Disposable Income by 10%. Analyze the potential impacts on local businesses and overall economic activity.
💡 Hint: Consider both consumption effects and business reactions to lower sales.
Evaluate the role of Disposable Income during a recession. How does it impact consumer decisions?
💡 Hint: Think about how people adjust expenditure when money is tight.
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