Total consumption consists entirely of two components: autonomous consumption and income-dependent consumption.

Question

Quizplus · Accepted Answer

This statement is true. Total consumption, which refers to the total amount of goods and services that are purchased by households, is made up of two components: autonomous consumption, which is not directly influenced by income, and income-dependent consumption, which increases as income increases.

Total Consumption Consists Entirely of Two Components: Autonomous Consumption and Income-Dependent