One In the News article titled "Consumer Confidence Index at All-Time Low" indicates that consumer confidence decreased.As a result,which of the following is most likely to happen?
A)Autonomous consumption will decrease.
B)Total spending will increase.
C)Investment will increase.
D)Government spending will decrease.

Question

Quizplus · Accepted Answer

When consumer confidence decreases, individuals are more likely to conserve their income and decrease their autonomous consumption (spending on necessary goods and services). Therefore, autonomous consumption will decrease.

One in the News Article Titled "Consumer Confidence Index at All-Time