A Decrease in Autonomous Consumption ________

question 58

Multiple Choice

A decrease in autonomous consumption ________.

• A)lowers planned expenditures
• B)raises equilibrium output for any level of the interest rate
• C)causes a movement down along the IS curve
• D)all of the above
• E)none of the above

---

Definitions:

Purchasing Power Parity

A theory in economics that suggests that in the absence of transaction costs and other barriers, identical goods should have the same price in different countries when prices are expressed in a common currency.

Prices

Monetary values assigned to products and services which are determined by the interaction of supply and demand in the market.

Exchange Rates

The value of one currency for the purpose of conversion to another.

Price Level

The cumulative average pricing for goods and services across various industries within the economy.