Asked by
Akyra Briggs
on Oct 13, 2024
Verified
How much is autonomous consumption when disposable income is $800 billion?
A) 0
B) $200 billion
C) $400 billion
D) $600 billion
E) Cannot be determined
Autonomous Consumption
Autonomous consumption is the level of consumption that occurs when income levels are zero, reflecting the basic level of consumption that is needed for survival.
Disposable Income
Post-tax disposable income that households can allocate for spending and saving.
- Understand the principles behind autonomous consumption.
- Separate the ideas of induced consumption from autonomous consumption.
Verified Answer
CC
Learning Objectives
- Understand the principles behind autonomous consumption.
- Separate the ideas of induced consumption from autonomous consumption.