_______is the maximum income available that can be saved and spent by a nation on the consumption of goods and services.

Correct option is A

The correct answer is (a) National Disposable Income

Explanation:

National Disposable Income (NDI) refers to the total income available to the nation for spending or saving, after accounting for net transfers from the rest of the world. It indicates the maximum amount of resources that a country can use for consumption and saving in a given period.

It is derived by:

NDI = Net National Product at Market Prices (NNP at MP) + Net current transfers from the rest of the world

Information Booster:

• National Disposable Income is a broader concept than National Income as it also includes net current transfers from abroad (like gifts, donations, and remittances).
• It gives a better idea of the actual purchasing power and consumption capacity of a nation.

Additional Knowledge:

1. Gross National Disposable Income: Includes depreciation and is the gross version of National Disposable Income.
2. National Income: Calculated as NNP at factor cost; it represents the total income earned by a country's residents.
3. Personal Disposable Income: It is the income available to individuals after paying direct taxes and receiving transfer payments.