-In the figure above, autonomous consumption is
A) zero.
B) $5 trillion.
C) $10 trillion.
D) $15 trillion.

Question

-In the figure above, autonomous consumption is
A) zero. 
B) $5 trillion. 
C) $10 trillion. 
D) $15 trillion.

Quizplus · Accepted Answer

Autonomous consumption is the level of consumption when income is zero, represented by the intercept of the consumption function on the consumption axis. In the given options, $5 trillion is the correct value for autonomous consumption, as it would be the point where the consumption function intersects the consumption axis if extended back.

-In the Figure Above, Autonomous Consumption Is