14.5 Chapter Figures

The above figure shows a nation's consumption function.
-Using this consumption function, autonomous consumption is
A) $0.
B) between $1 and $2 trillion.
C) more than $2 trillion and less that $5 trillion.
D) more than $5 trillion and less than $8 trillion.
E) more than $8 trillion.

Question

14.5 Chapter Figures
  
The above figure shows a nation's consumption function.
-Using this consumption function, autonomous consumption is
A) $0. 
B) between $1 and $2 trillion. 
C) more than $2 trillion and less that $5 trillion. 
D) more than $5 trillion and less than $8 trillion. 
E) more than $8 trillion.

Quizplus · Accepted Answer

Autonomous consumption is the portion of consumption that is unrelated to income and is represented by the vertical intercept of the consumption function. In this graph, the intercept is between $1 and $2 trillion, therefore the correct answer is B.

14.5 Chapter Figures The Above Figure Shows a Nation's Consumption Function