All of the following,except one,will cause an increase in autonomous consumption.Which is the exception?
A)A decrease in autonomous taxes.
B)Increased optimism in Canada's future economic prospects.
C)A sharp drop in the value of stock prices.
D)An increase in the average age of consumer durables.

Question

Quizplus · Accepted Answer

A decrease in autonomous taxes (A), increased optimism in Canada's future economic prospects (B), and an increase in the average age of consumer durables (D) can all lead to an increase in autonomous consumption. However, a sharp drop in the value of stock prices (C) can lead to a decrease in autonomous consumption as people may feel less wealthy and therefore reduce their spending.

All of the Following,except One,will Cause an Increase in Autonomous