scenario: carl has just received his weekly check from his after - school job. in his budget, he did not…

scenario: carl has just received his weekly check from his after - school job. in his budget, he did not plan for withholdings. now that he has received his check, he has been reminded that taxes will be withheld. he realizes that he needs to return to his budget to make some changes. based on this information, which is the first change should carl make to his monthly budget? a greater gross income a greater amount for discretionary spending a lower net income a decrease in the number of fixed expenses

scenario: carl has just received his weekly check from his after - school job. in his budget, he did not plan for withholdings. now that he has received his check, he has been reminded that taxes will be withheld. he realizes that he needs to return to his budget to make some changes. based on this information, which is the first change should carl make to his monthly budget? a greater gross income a greater amount for discretionary spending a lower net income a decrease in the number of fixed expenses

Answer

Explanation:

Step1: Understand income concepts

Gross income is the total amount earned before any deductions. Net income is what's left after deductions like taxes.

Step2: Analyze the situation

Since taxes will be withheld from Carl's check, his take - home pay (net income) will be less than he initially thought without accounting for taxes.

Step3: Evaluate options

A greater gross income is not a change he can make based on this situation. A greater amount for discretionary spending is not possible as taxes reduce his take - home pay. He can't directly decrease the number of fixed expenses due to this new tax realization. His net income will be lower because of the tax withholdings.

Answer:

a lower net income