As an household's wealth increases, it will experience a(n):
A) increase in its MPC.
B) decrease in autonomous consumption.
C) decrease in its MPS.
D) increase in autonomous consumption.
E) increase in autonomous saving.

Question

Quizplus · Accepted Answer

As household's wealth increases, they tend to spend more on goods and services, leading to an increase in their autonomous consumption. Therefore, choice D is the best choice.

As an Household's Wealth Increases, It Will Experience A(n)