The part of consumption that does NOT depend upon the level of disposable income is
A) autonomous consumption.
B) saving.
C) savings.
D) average propensity to consume.

Question

Quizplus · Accepted Answer

Autonomous consumption is the part of consumption that does not depend on the level of disposable income. It includes essential goods and services such as food, clothing, and shelter that people must consume regardless of their income level. Saving and the average propensity to consume are influenced by disposable income, while "savings" is not a distinct part of consumption but rather the amount of income that is not consumed.

The Part of Consumption That Does NOT Depend Upon the Level