3 years ago

What is the prime reason that Jenny's discretionary income is more volatile than her salary?

Business

1 answer:

sweet [91]3 years ago

7 0

Answer:

c. Her mortgage payments and necessities are fixed

Explanation:

Discretionary income is the remaining income after being paid out for all fixed expenses (i.e. Discretionary income = Salary - Mortgage - Income tax etc). The primary reason for variability in it is due to the mortgage payment and fixed expenses from the basic salary received.

So, option c is correct while other options are incorrect as tax does not affect as well as cost of living

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