Discretionary income is the money available for spending, investing, or saving after taxes and essential expenses have been paid.
Disposable income formula is used to calculate the money available to the people for spending, saving and consumption after adjusting for income tax
The income effect is a term used in economics to describe how consumer spending changes, typically based on price of consumer goods. Given the same income, consumer habits and quantity of items desired tends to be affected by price of those items. A person making a given salary tends to hav...
Taxable income isgross incomemade by an individual or business that is considered taxable by a state or country, or both in the US. There are certain things, depending upon income level and other country-mandated deductions, that are reduced from the amount of income considered taxable. For ex...
Justin Wolfers, a professor of economics at the University of Michigan, said, "The really interesting thing is, if you ask Americans how they're doing, they say pretty well. If you ask them how the economy is doing, they say terrible. "What they tell pollsters is, they dislike the ...
going up fastest at the lower end of the wage distribution," said Bill Kosteas, an economics professor at Cleveland State University. "At the end of the day, if inflation is running 8.6 percent, that 6 percent pay increase that you got becomes a pay reduction when you factor in inflation...
What happened then was a craze for these specialized tulips.We call that craze “tulip mania.”So—here we’ve got all the conditions for an-an irrational boom: a prospering economy, so more people had more disposable income—money to spend on luxuries—but they weren’t experienced at inv...
Disposable income is the amount of money that an individual or household has to spend or save after federal, state, and local taxes and other mandatory charges are deducted. Economists closely monitor disposable personal income as a key indicator of the strength of the economy. Also known as d...
Disposable income, also known as disposable personal income (DPI) or net pay, is the amount of money you have left over from your total annual income after paying all direct federal, state, and local taxes. For example, a family with an annual household income of $90,000 that pays $20,...
A leverage ratio is a type of financial measurement used in finance, business, and economics to evaluate the level of debt relative to another financial metric.