Autonomous expenditure is spending that:
A) is based on the rate of borrowing.
B) is determined by the government.
C) is not sensitive to the level of income in the economy.
D) occurs when income changes in the economy.

Question

Quizplus · Accepted Answer

Autonomous expenditure refers to spending that is not affected by changes in the level of income in the economy. This type of spending includes government spending, investment spending, and exports. Even if income in the economy changes, autonomous expenditure remains constant.

Autonomous Expenditure Is Spending That