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 income

Answer 1

Autonomous consumption is consumption that is independent of the level of disposable income. It refers to the basic level of consumption that occurs even when disposable income is zero, representing the minimum consumption needs (such as food, shelter, etc.) that individuals require.