Asked by
Bailee Bryant
on Nov 30, 2024Verified
Which statement is true?
A) Autonomous C can never be zero.
B) Induced C can never be zero.
C) Neither autonomous C nor induced C can be zero.
D) None is true.
Autonomous C
Consumer spending that does not depend on current income, influenced by factors like confidence and wealth, key for understanding economic fluctuations.
Induced C
Refers to the consumption that varies with income levels; as income increases, so does the consumption level.
- Acquiring knowledge about the concept of autonomous consumption and its relevance in the analysis of economics.
Verified Answer
BB
Learning Objectives
- Acquiring knowledge about the concept of autonomous consumption and its relevance in the analysis of economics.