Which of the Following Would Lead to a Decrease in Autonomous

question 177

Multiple Choice

Which of the following would lead to a decrease in autonomous consumption spending?

• A) a decrease in disposable income
• B) an increase in disposable income
• C) an increase in the interest rate
• D) more optimistic expectations about future income
• E) an increase in wealth

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Definitions:

Constitutional Reform

The process of formally changing or amending the constitution of a nation or state to address legal, structural, or functional aspects.

Special Interest Effect

The phenomenon where policy decisions are disproportionately influenced by small, organized groups at the expense of the larger public's interest.

Government Failure

Situations where government intervention in the economy creates inefficiency, leading to a misallocation of resources.

Externalities

The side effects or consequences of commercial activities that affect other parties without being reflected in cost.