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‘Personal Income’ equals
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- The household sector’s income
- Private income minus savings of the corporate sector minus corporation tax
- Personal disposable income plus miscellaneous receipts of the Goverment
- All of the above
- The household sector’s income
Correct Option: C
Disposable income is total personal income minus personal current taxes (or plus receipts of the government). In national accounts definitions, personal income, minus personal current taxes equals disposable personal income. Subtracting personal outlays (which includes the major category of personal (or, private) consumption expenditure) yields personal (or, private) savings
