The amount of consumption expenditure that takes place when income is zero is
A) equal to zero.
B) equal to saving.
C) called autonomous consumption.
D) called induced consumption.
E) called zero-based consumption.

Question

Quizplus · Accepted Answer

Autonomous consumption refers to the level of consumption expenditure that occurs even when income is zero, as it represents the basic consumption needs that are met regardless of income level.

The Amount of Consumption Expenditure That Takes Place When Income