Identify the correct statement.
A)Autonomous consumption equals saving when disposable income is equal to zero.
B)Saving is equal to consumption when autonomous consumption is zero.
C)The savings function always has a positive intercept when autonomous consumption is positive.
D)The consumption and saving function intersect each other when disposable income is zero.
E)Autonomous consumption is positive even when disposable income is zero.

Question

Quizplus · Accepted Answer

Autonomous consumption is the level of consumption that occurs even when disposable income is zero, indicating that it is positive at zero income.

Identify the Correct Statement