Autonomous Consumption

question 360

Multiple Choice

Autonomous consumption

• A) increases with income.
• B) decreases with income.
• C) is independent of income and must be equal to zero.
• D) is independent of income.

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Definitions:

Authorized

Officially permitted or agreed upon, often referring to the maximum number of shares a corporation is legally allowed to issue.

Outstanding

Refers to shares that are currently owned by investors, including those held by public investors, institutional investors, and company insiders.

Cumulative

Referring to the total amount aggregated over a period of time.

Noncumulative

Noncumulative refers to a type of preferred stock where dividends do not accumulate if they are not declared or paid in a given dividend period.