An Increase in Autonomous Consumption ________

question 39

Multiple Choice

An increase 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

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Definitions:

Accounting Profit

The profit a company has after deducting all its expenses from its total revenue.

Verizon Wireless

A major American telecommunications company known for providing wireless products and services.

Implicit Cost

The opportunity cost incurred by using assets, resources, or funds for a specific purpose rather than the next best alternative.

Competitive Rate

Pricing that is on par or better than what is offered by competitors in the market, often used to attract customers.