A decrease in autonomous consumption will
A) shift the aggregate expenditure function downward.
B) decrease the marginal propensity to save.
C) decrease the marginal propensity to consume.
D) change the slope of the aggregate expenditure curve.

Question

Quizplus · Accepted Answer

A decrease in autonomous consumption directly leads to a downward shift in the aggregate expenditure function, as it represents a decrease in the amount of consumption that occurs regardless of the level of income or output.

A Decrease in Autonomous Consumption Will