Which of the following is the definition of autonomous consumption spending?
A) The effect of a change in wealth on consumption spending
B) The part of consumption spending that is independent of disposable income
C) The impact of disposable income on consumption spending
D) The part of consumption spending that is independent of wealth
E) The horizontal intercept of the consumption function.

Question

Quizplus · Accepted Answer

Autonomous consumption spending refers to the portion of consumption spending that is independent of disposable income, meaning it is not influenced by changes in income levels.

Which of the Following Is the Definition of Autonomous Consumption