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:

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