Autonomous consumption is equal to
A) consumption caused by an increase in disposable income.
B) saving when consumption equals disposable income.
C) dissaving when disposable income is greater than zero.
D) consumption when disposable income is zero.

Question

Quizplus · Accepted Answer

Autonomous consumption is the minimum level of consumption that must occur even if disposable income is zero. This means that even if a person has no income, they would still need to consume basic necessities such as food, shelter, and clothing. Therefore, autonomous consumption is equal to consumption when disposable income is zero.

Autonomous Consumption Is Equal to