A change in consumption, in response to a change in income, is
A)unplanned consumption.
B)autonomous consumption.
C)induced consumption.
D)equilibrium consumption.
E)planned consumption.

Question

Quizplus · Accepted Answer

A change in consumption, in response to a change in income, is referred to as induced consumption. Autonomous consumption is consumption that occurs regardless of changes in income. Planned consumption refers to consumption that is intentionally chosen by individuals or households. Equilibrium consumption refers to the level of consumption that ensures that savings equals investment. Unplanned consumption refers to consumption that is not intentionally chosen by individuals or households, such as unexpected purchases or emergencies.

A Change in Consumption, in Response to a Change in Income