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Which of the Following Statements Is True

question 71

Multiple Choice

Which of the following statements is true?


Definitions:

Disposable Income

Disposable income is the portion of an individual's or household's earnings left over for savings and expenditures after paying off income taxes.

Autonomous C

Autonomous consumption, the level of spending not influenced by current levels of income.

Induced C

Induced consumption, which refers to the spending by households that varies with income levels.

Induced Consumption

Induced consumption is the portion of consumer spending that increases with income, implying that as people earn more, they tend to spend more.

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