Which of the Following Causes Autonomous Consumption to Decrease

question 3

Multiple Choice

Which of the following causes autonomous consumption to decrease?

• A) a decrease in consumer income
• B) consumers becoming more thrifty
• C) consumers becoming more optimistic about future decreases in the price level
• D) an increase in average family size

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Definitions:

Tax Imposition

The act of placing a financial charge or levy upon a taxpayer by a governmental organization.

Buyers

Individuals or entities that purchase goods or services from sellers in exchange for money or other valuable considerations.

Sellers

Individuals or entities that offer goods or services for sale to potential buyers.

Deadweight Losses

Economic inefficiencies that occur when the market equilibrium is not achieved, often due to external interference such as taxes or monopolies, resulting in a loss of total surplus.