In the saving function,autonomous saving is
A)-a + (1 - c)(Y -T).
B)(1 - C)Y.
C)-a.
D)-Y - T.

Question

Quizplus · Accepted Answer

Autonomous saving refers to the portion of saving that is not influenced by factors such as income or interest rates. It is the intercept of the saving function, which is represented by "-a" in the context of the saving function equation. This term stands alone and does not change with income (Y) or taxes (T), making it the autonomous component.

In the Saving Function,autonomous Saving Is