Autonomous consumption spending is consumption spending:
A)that is dependent on changes in disposable income.
B)on durable goods.
C)that causes the MPC to rise.
D)that is independent of the level of disposable income.
E)that causes the MPC to fall.

Question

Quizplus · Accepted Answer

Autonomous consumption spending refers to the portion of consumption that does not change with changes in disposable income; it is independent of income levels.

Autonomous Consumption Spending Is Consumption Spending