Autonomous consumption is consumption that:

Question

varies directly with disposable income

varies inversely with disposable income

independent of the level of disposable income

is constant at first and then varies with disposable incom

Answer 1

Autonomous consumption is consumption that is independent of the level of disposable income. This refers to the portion of consumption that occurs even when disposable income is zero, reflecting the basic needs and necessities that individuals consume regardless of their income level.