Question

g Autonomous consumption is consumption spending when the marginal propensity to consume is 1. consumption spending that is earned rather than transferred from the government. consumption spending that does not depend on the level of income. the amount spent on consumption when saving equals zero.

Answer 1

The correct answer is : consumption spending that does not depend on the level of income.

Step-by-step explanation:

There are some basic necessities that a consumer needs for survival, even if the consumer's income is zero, the consumer needs to incur some expenditure either through borrowing or dissaving. This spending is called autonomous consumption.

Unlike induced consumption, it is the consumer spending that does not depends on the level of income and remains the same despite the change in income level. It changes because of some foreseen or unforeseen events