Asked by
Daniel Bogale
on Oct 13, 2024Verified
Autonomous consumption is
A) that part of consumption that rises or falls with changes in disposable income.
B) the minimum that people will spend even if disposable income is zero.
C) the amount people will spend when the C line crosses the 45-degree line.
D) the amount people will spend when income is equal to consumption.
Autonomous Consumption
Spending by consumers that is not influenced by changes in current income levels, typically covering basic necessities.
Disposable Income
The pool of funds households have for saving and spending pursuits after income taxes are factored out.
Consumption
The use of goods and services by households, constituting a major part of the economy's total output.
- Distinguish between self-determined and externally-driven consumption.
Verified Answer
KO
Learning Objectives
- Distinguish between self-determined and externally-driven consumption.