What does autonomous consumption refer to?
A)The level of consumption spending at break-even income.
B)The level of consumption spending which is independent of the income level.
C)The level of consumption spending which is independent of the rate of interest.
D)The amount of consumption spending when saving is zero.
E)The poverty-line level of consumption.

Question

Quizplus · Accepted Answer

Autonomous consumption refers to the level of consumption spending which is independent of the income level. This means that even if there is zero income, there will still be some consumption spending. It could be due to basic needs such as food or shelter, or it could be due to cultural or habitual reasons.

What Does Autonomous Consumption Refer To