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:

Fiscal Policy

Government policies related to revenue generation (taxation) and expenditure to influence the economy.

Monetary Policy

The process by which a country's central bank controls the supply of money, often targeting inflation or interest rates to ensure economic stability.

Federal Reserve Bank

The central banking system of the United States, responsible for monetary policy, regulation of banks, and providing financial services.

Gross Domestic Product

The aggregate value of all products and services finished within a nation's boundaries over a distinct timeframe, measured in monetary or market terms.