For any given consumption function, autonomous consumption is equal to the level of consumption associated with:
A)negative disposable income.
B)positive disposable income.
C)zero disposable income.
D)unstable disposable income.

Question

Quizplus · Accepted Answer

Autonomous consumption is the level of consumption that occurs when disposable income is zero. It represents the basic consumption needs that are met regardless of income level.

For Any Given Consumption Function, Autonomous Consumption Is Equal to the Level