Autonomous expenditure is a type of expenditure that does not depend on
A)wealth.
B)expectations.
C)interest rates.
D)GDP.
E)price level.

Question

Quizplus · Accepted Answer

Autonomous expenditure is defined as spending that does not vary with the level of income or GDP. This means it is independent of the economy's current income level. Choices A, B, C, and E (wealth, expectations, interest rates, and price level) can influence various types of expenditures but are not directly related to the definition of autonomous expenditure, which is specifically about its independence from GDP.

Autonomous Expenditure Is a Type of Expenditure That Does Not