In the consumption function,the real interest rate,consumer confidence,wealth,available consumer credit,and consumer debt are captured in the autonomous consumption term of the consumption function.

Question

Quizplus · Accepted Answer

The autonomous consumption term in the consumption function captures the factors that are not directly influenced by changes in disposable income, such as the real interest rate, consumer confidence, wealth, available consumer credit, and consumer debt. Therefore, the statement is true.

In the Consumption Function,the Real Interest Rate,consumer Confidence,wealth,available Consumer Credit,and