Which of the Following Is True Regarding Autonomous Spending

question 62

Multiple Choice

Which of the following is true regarding autonomous spending?

• A)It depends on the level of income.
• B)It is the level of spending when income is zero.
• C)It falls as income rises.
• D)It can be negative.

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Definitions:

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, indicating improvements in living standards and economic health.

International Competitiveness

The ability of a country to produce goods and services at a lower price and higher quality than its international competitors.

Economic Fluctuations

Variations in the growth rate of an economy over a period of time, characterized by cycles of expansion and contraction.

Regressive Income Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.