Autonomous consumption is defined as:
a. the level of consumption that depends only on the exchange rate.
b. the consumption expenditures incurred by the government.
c. the level of consumption that does not depend on income.
d. an equilibrium condition that needs to be met for the aggregate expenditure model to work.
e. the part of consumption that is related to investment.
c
You might also like to view...
As the marginal propensity to consume ________, the value of the multiplier increases
A) decreases slightly B) is constant C) increases D) decreases
Choosing optimal user fees for government produced services is similar to choosing optimal taxes.
A. True B. False C. Uncertain
If technological breakthroughs in the computer and software industries cause large numbers of firms to consider investment projects they hadn't previously thought of,
A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward. E) an excess demand for loanable funds emerges and persists.
Portfolio investment refers to a form of financial investment that crosses international boundaries, and thus requires an exchange of currency
a. True b. False Indicate whether the statement is true or false