Which of the Following Is True of the Disposable Income

Multiple Choice

Which of the following is true of the disposable income of the households?

A) An increase in the average price level lowers the disposable income of the households.
B) Disposable income refers to the purchasing power of nominal income.
C) An increase in direct taxes will lower the disposable income of the households.
D) A decrease in government transfers will increase the disposable income of the households.
E) Disposable income refers to the net private transfers of the household sector.