Assume personal income was $28 million last year. Personal outlays were $20 million and personal current taxes were $5 million.

Question

a. What was the amount of disposable personal income last year?
Disposable personal income (DPI) = personal income – personal current taxes
DPI = xxx million – xxx million = xxx million

b. What was the amount of personal savings last year?
Personal savings (PS) = disposable personal income – personal outlays
PS = xxx million – xxx million = xxx million

c. Calculate personal savings as a percentage of disposal personal income?
Savings rate = $ xxx million/$ xxx million = xxx %