Which of the following would lead to a decrease in autonomous consumption spending?
A) a decrease in disposable income
B) an increase in disposable income
C) an increase in the interest rate
D) more optimistic expectations about future income
E) an increase in wealth

Question

Quizplus · Accepted Answer

An increase in the interest rate typically leads to a decrease in autonomous consumption spending as borrowing becomes more expensive, reducing consumer spending.

Which of the Following Would Lead to a Decrease in Autonomous