If the marginal propensity to consume is unchanged and autonomous consumption expenditures increase, then
A) saving at every level of disposable income increases.
B) the break-even disposable income decreases.
C) the break-even disposable income increases.
D) saving is unaffected.

Question

Quizplus · Accepted Answer

When autonomous consumption increases, the consumption function shifts upward, leading to a higher break-even disposable income, where consumption equals income.

If the Marginal Propensity to Consume Is Unchanged and Autonomous