When disposable income is zero, consumption expenditure is
A) equal to autonomous consumption.
B) also zero.
C) negative.
D) equal to induced consumption expenditure.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

When disposable income is zero, consumption expenditure is equal to autonomous consumption, which is the minimum level of consumption that occurs even when income is zero.

When Disposable Income Is Zero, Consumption Expenditure Is