Autonomous consumption is defined as
A) the level of real consumption spending that is independent of real disposable income.
B) the real consumption spending by the autonomous government.
C) the level of real consumption spending that is equal to real disposable income.
D) the consumption of foreign-made goods independent of exchange rates.

Question

Quizplus · Accepted Answer

Autonomous consumption refers to the level of consumption spending that is independent of disposable income. This means that even if an individual's disposable income were to decrease, their autonomous consumption would remain unchanged. It is often based on factors such as habit or a minimum level of needed consumption.

Autonomous Consumption Is Defined as