The Amount of Autonomous Consumption in an Economy Is Measured

question 56

Multiple Choice

The amount of autonomous consumption in an economy is measured by the:

• A) the intercept of the consumption function when disposable income is positive.
• B) the intercept of the consumption function where actual consumption is above the 45-degree line.
• C) the intercept of the consumption function when disposable income is zero.
• D) the intercept of the consumption function where actual consumption is below the 45-degree line.
• E) the intercept of the consumption function when disposable income is negative.

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Definitions:

Total Return

The overall return on an investment over a certain period, accounting for both capital gains and dividends or interest.

British Securities

Financial instruments such as stocks, bonds, or other investment vehicles, traded or available in the UK market.

U.S. Dollars

The official currency of the United States, widely used as a benchmark and reserve currency worldwide.

Risk-Free Rate

The theoretical return of an investment with zero risk, often represented by U.S. government bonds.