Autonomous consumption is defined as:
A)the domestic consumption that does not depend on the exchange rate.
B)the consumption expenditures incurred by the government.
C)the level of consumption that does not depend on income.
D)an equilibrium condition that needs to be met for the model to work.
E)the part of consumption that is related to investment.

Question

Quizplus · Accepted Answer

Autonomous consumption is the level of consumption that does not depend on income. It is the consumption that individuals would still undertake even if they had no income whatsoever, such as basic necessities like food and shelter.

Autonomous Consumption Is Defined As