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:

Supraspinatus

A muscle located in the back of the shoulder that helps lift the arm away from the body.

Latissimus Dorsi

A large, flat muscle on the back that stretches to the sides, behind the arm, and is involved in the movement of the shoulder.

Biceps Brachii

A muscle in the upper arm that helps control the motion of the shoulder and elbow.

Lateral Rotator

A muscle that rotates a limb away from the body's midline.