Figure 10-6

-In Figure 10-6, which graph best illustrates an autonomous increase in consumption spending?

Question

Figure 10-6
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-In Figure 10-6, which graph best illustrates an autonomous increase in consumption spending?

Quizplus · Accepted Answer

An autonomous increase in consumption spending is depicted as a shift upwards of the consumption function in a graph of consumption versus income. This means that at every level of income, consumption is higher than before. Graph (1) would best illustrate this scenario, as it shows a consumption curve shifting upwards, indicating an increase in consumption at all levels of income, independent of changes in income.

Figure 10-6 ​

Figure 10-6