Which of the Following Would Lead to a Decrease in Autonomous

question 177

Multiple Choice

Which of the following would lead to a decrease in autonomous consumption spending?

• A) a decrease in disposable income
• B) an increase in disposable income
• C) an increase in the interest rate
• D) more optimistic expectations about future income
• E) an increase in wealth

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Definitions:

Agent

An individual or entity authorized to act on behalf of another, often in a business transaction, representing their interests.

General Partnership

A business arrangement where two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a business.

Limited Liability

Limited liability is a legal structure where a company's owners are not personally liable for the company's debts or liabilities beyond their initial investment.