Exhibit 10-1

-In Exhibit 10-1, which of the variables are autonomous?
A)saving and consumption only
B)net taxes and government purchases only
C)net exports and government purchases only
D)consumption, investment, and net exports only
E)investment, net exports, net taxes, and government purchases

Question

Exhibit 10-1
 
-In Exhibit 10-1, which of the variables are autonomous?
A)saving and consumption only 
B)net taxes and government purchases only 
C)net exports and government purchases only 
D)consumption, investment, and net exports only 
E)investment, net exports, net taxes, and government purchases

Quizplus · Accepted Answer

Autonomous variables are those that do not depend on the level of income or output. Investment, net exports, net taxes, and government purchases are typically considered autonomous because they are determined by factors other than current income levels.

Exhibit 10-1 -In Exhibit 10-1, Which of the Variables Are Autonomous