Autonomous consumption is defined as:
A) the level of consumption that depends only on the exchange rate.
B) the consumption expenditures incurred by the government.
C) the level of consumption that does not depend on income.
D) an equilibrium condition that needs to be met for the aggregate expenditure model to work.
E) the part of consumption that is related to investment.

Question

Quizplus · Accepted Answer

Autonomous consumption is the part of consumption that does not depend on income, meaning it is a constant level of spending that is not influenced by changes in income or other economic variables.

Autonomous Consumption Is Defined As