Answer :
Disposable income is aggregate income B. minus taxes plus transfer payments.
Disposable income is the amount of money that households have available for spending and saving after paying taxes. It can be defined as aggregate income minus taxes plus transfer payments. This means:
- Aggregate income is the total income earned by individuals in the economy from all sources.
- Taxes include income taxes, social insurance taxes, sales taxes, property taxes, and any other taxes collected by the government.
- Transfer payments refer to payments made by the government to individuals, such as social insurance, welfare payments, and unemployment compensation, that do not require a good or service in return.
Thus, the correct answer is: B.
