Which of the following causes autonomous consumption to decrease?
A) a decrease in consumer income
B) consumers becoming more thrifty
C) consumers becoming more optimistic about future decreases in the price level
D) an increase in average family size

Question

Quizplus · Accepted Answer

Autonomous consumption refers to the level of consumption that occurs regardless of income, often driven by factors such as consumer confidence, expectations, and habits. When consumers become more thrifty, they are likely to save more and spend less, including on their basic needs, which directly leads to a decrease in autonomous consumption.

Which of the Following Causes Autonomous Consumption to Decrease