Autonomous expenditure is not influenced by
A) the price level.
B) the interest rate.
C) real GDP.
D) any other variable.

Question

Quizplus · Accepted Answer

Autonomous expenditure is defined as spending that does not vary with the level of real GDP; it is independent of the economy's income level. Choices A and B (price level and interest rate) can influence overall spending, but autonomous spending is specifically characterized by its independence from real GDP levels. Choice D is incorrect because autonomous expenditure can be influenced by factors other than real GDP, such as fiscal policy or consumer confidence.

Autonomous Expenditure Is Not Influenced by