Autonomous spending in a closed economy equals which of the following?

Question

Quizplus · Accepted Answer

Autonomous spending in a closed economy is the part of spending that does not depend on the level of income or output. It includes autonomous consumption (c₀), investment (I), government spending (G), and is adjusted for taxes (T) through the parameter c₁, which represents the marginal propensity to consume out of net income. The correct formula, which does not depend directly on the level of income or output, is c₀ + I + G - c₁T, where taxes (T) reduce disposable income and thus autonomous consumption.

Autonomous Spending in a Closed Economy Equals Which of the Following