Consumption expenditures decrease when ________.
A)the real interest rate falls
B)disposable income increases
C)autonomous consumption increases
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Consumption expenditures typically increase, not decrease, when the real interest rate falls (as borrowing becomes cheaper), disposable income increases (as people have more money to spend), or autonomous consumption increases (reflecting a higher baseline level of consumption regardless of income).

Consumption Expenditures Decrease When ________