Autonomous expenditure is expenditure that is
A) influenced by real GDP.
B) influenced by the interest rate.
C) not influenced by real GDP.
D) not influenced by the interest rate.
E) not influenced by the price level.

Question

Quizplus · Accepted Answer

Autonomous expenditure is expenditure that is not influenced by real GDP. This means that it is independent of changes in the level of output in the economy, and can include government spending, investment, and exports. It is important to note that autonomous expenditure can still be influenced by other factors, such as the interest rate, but it is not directly affected by changes in real GDP.

Autonomous Expenditure Is Expenditure That Is