Suppose There Is an Increase in Autonomous Consumption

question 16

Multiple Choice

Suppose there is an increase in autonomous consumption.Specifically,suppose c₀ increases where C = c₀ + c₁YD. This increase in autonomous consumption will cause which of the following to increase?

• A)equilibrium income
• B)equilibrium disposable income
• C)demand
• D)all of the above
• E) none of the above

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Definitions:

Instinct Approaches

A perspective in psychology that suggests human and animal behaviors are innate and driven by evolutionary pressures.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Instinct Approaches

Theoretical perspectives in psychology that suggest some human behaviors are innate and due to evolutionary programming.

Explanation

The process of making something clear or understandable by describing the relevant facts or ideas.