-The figure above shows a nation's consumption function.The amount of autonomous consumption expenditure is
A)$0.
B)$2 trillion.
C)$1 trillion.
D)$3 trillion.
E)more than $3 trillion.

Question

-The figure above shows a nation's consumption function.The amount of autonomous consumption expenditure is
A)$0. 
B)$2 trillion. 
C)$1 trillion. 
D)$3 trillion. 
E)more than $3 trillion.

Quizplus · Accepted Answer

Autonomous consumption expenditure is the level of consumption when income is zero. In the figure, this is represented by the y-intercept of the consumption function, which is $1 trillion.

-The Figure Above Shows a Nation's Consumption Function