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 vary with changes in disposable income. It includes necessary expenses, such as food and housing, that must be incurred regardless of income level. Saving and the average propensity to consume both depend on disposable income, while "savings" is not a separate concept in this context.

The Part of Consumption That Does Not Depend Upon the Level