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Which of the Following Is a Key Difference Between Disposable

Question 69

Multiple Choice

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.

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