Autonomous consumption
A) is measured by the slope of the consumption function.
B) is the reciprocal of consumption.
C) is equal to the minimum savings.
D) is measured by the intercept of the consumption function and the Y-axis.

Question

Quizplus · Accepted Answer

Autonomous consumption is the consumption level that occurs when income is zero, which is represented by the intercept of the consumption function and the Y-axis. Therefore, it is measured by the intercept of the consumption function, which is represented by choice D.

Autonomous Consumption