A) It is obtained by subtracting direct taxes from personal income
B) It is obtained by adding the direct taxes in personal income.
C) It is obtained by subtracting indirect taxes from personal income.
D) It is obtained by adding per capita indirect taxes in the personal income.
Correct Answer: A
Solution :[a] Disposable income is total personal income minus personal current taxes. In national accounts definitions, personal income, minus personal current taxes equals disposable personal income.
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