Carl and Nancy Johnson Prepared a Household Budget in an Attempt

Multiple Choice

Carl and Nancy Johnson prepared a household budget in an attempt to manage their money better.As part of their budgeting process,Carl and Nancy prepared the following list: Monthly Income (after taxes) = $4,500;Monthly Expenses (Necessities) ,which include Rent: $550,Auto Loan: $250,Student Loan: $200,Savings: $500,Food: $200;Total Monthly Expenses = $1,700;Amount Left Over = $2,800.After totaling their necessary expenses,which equals $1,700,Carl and Nancy subtracted that amount from their monthly income of $4,500.The Johnsons were happy to realize that they had $2,800 left over,which is their __________.

A) gross income
B) personal income
C) disposable income
D) discretionary income
E) profit