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8 May, 2015 - 10:50

Income is used for consumption, savings and taxes. Consumption is further subdivided among durable goods (lasting more than one year), nondurable goods (lasting less that one year) and services.

Income disposition shows what people do with their income. For instance, the savings rate, or proportion of income devoted to saving shows the attitude of the population toward thrift and consumption. Compared to other nations, the United States is more of a consumption oriented society.