A decrease in autonomous consumption means that
A) the consumption function shifts up.
B) the consumption function shifts down.
C) the consumption function becomes steeper.
D) the consumption function becomes less steep.

Question

Quizplus · Accepted Answer

Autonomous consumption refers to the level of consumption that does not depend on income. A decrease in autonomous consumption means that at any given level of income, individuals will consume less. This results in a downward shift of the consumption function, as consumption will be lower at each level of income.

A Decrease in Autonomous Consumption Means That