If consumption spending is $400 and disposable income is $500, then, what can you deduce?

Asked on by alistonsr

1 Answer | Add Yours

readerofbooks's profile pic

readerofbooks | College Teacher | (Level 2) Educator Emeritus

Posted on

It will be difficult to answer this question in a specific way, until there is more information. However, there are a few things that we can deduce. 

First, If you are spending 400 dollars and your disposable income is 500 dollars, then you have 100 dollars that you can save, that is if your consumption is taken out of your disposable. 

Second, this would mean that you are fiscally responsible or your company is fiscally responsible. This means that you will be able to either save this extra 100 dollars or invest this back into something that would grow your business. Or you can save this money for a great opportunity. 

We’ve answered 319,832 questions. We can answer yours, too.

Ask a question