Autonomous consumption is equal to
A) consumption when disposable income is zero.
B) consumption caused by an increase in disposable income.
C) dissaving when disposable income is greater than zero.
D) saving when consumption equals disposable income.

Question

Quizplus · Accepted Answer

Autonomous consumption refers to the level of consumption that occurs even when disposable income is zero, usually due to factors such as habits, culture, or psychological preferences. When disposable income is greater than zero, consumption may increase due to additional income, but that is not considered autonomous consumption. Dissaving and saving are also not directly related to autonomous consumption.

Autonomous Consumption Is Equal to