Question

Which of the following is a determinant of autonomous consumption?                A. The price level.     B....

Which of the following is a determinant of autonomous consumption?

              

A.

The price level.    

B.

Taxes.    

C.

The availability of credit.    

D.

All of the above.

Homework Answers

Answer #1

Answer....... c ( The availability of credit)

Explanation — Autonomous consumption is the minimum consumption of the society which it must incurs for survival, It doesn't depend on the level of disposable income of the society, the major determinants of autonomous consumption are wealth, future expectations, interest rate, availability of credit etc.

Taxes change disposable income which can't affect autonomous consumption while a change in the price level affects real income of buyers which again can't affect the autonomous consumption.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is a key determinant of operating leverage? a. Level of debt. b....
Which of the following is a key determinant of operating leverage? a. Level of debt. b. Physical location of production facilities. c. Cost of debt. d. Technology. e. Capital structure.
1) Which of the following is NOT a determinant of the price elasticity of demand? A)...
1) Which of the following is NOT a determinant of the price elasticity of demand? A) the availability of potential substitutes B) the share of the budget spent on the item C) the time the consumer has to adjust to the price change D) the cost to produce the product 2) Which of the following will cause a rightward shift of the demand curve?                                   A) a decrease in the cost of production B) a decrease in the price of the...
3.   Which of the following would be LEAST LIKELY to be considered a long-run determinant of...
3.   Which of the following would be LEAST LIKELY to be considered a long-run determinant of consumption? (a) an external shock to the financial system; (b) attitudes toward thrift; (c) the availability and cost of credit; (d) asset holdings of households and businesses. 4.   Impacts of taxes can be felt in: (a) changes in the propensity to take on risk; (b) alterations of the work-leisure tradeoff; (c) adjustments in the capital-to-labor ratio and investment; (d) all of the above. 5.  ...
Which of the following factor(s) represented the major determinant in the findings of Walter Mischel’s research?...
Which of the following factor(s) represented the major determinant in the findings of Walter Mischel’s research? a. Participant's reward b. Participant's sex c. Participant's age d. None of the above e. All of the above
After an increase in autonomous? spending, in the long? run, changes in the price level A....
After an increase in autonomous? spending, in the long? run, changes in the price level A. will not affect the multiplier. B. will make the AE curve flatter. C. will reduce the effect of the multiplier. D. will make the AE curve steeper.
1. Suppose the consumption function in the U.S. is represented by the following equation (where B...
1. Suppose the consumption function in the U.S. is represented by the following equation (where B represents billions) C = 200B + 0.8YD a) What is the value of the MPC? ___________ b) What is the level of autonomous consumption? ____________ c) What is the level of consumer spending when income is equal to $1200B? d) What is the level of consumer spending if income increases by $400B?
Assume the following values: Marginal Propensity to Consume b = 0.8; Autonomous Consumption a = 200;...
Assume the following values: Marginal Propensity to Consume b = 0.8; Autonomous Consumption a = 200; Investment Spending I = 250. There is no government spending. a) For a consumption function C = a + bY, what is the equilibrium value for income Y in the economy? (The value at which planned aggregate expenditure and planned output coincide.) b) What changes when Investment Spending increases to 300? When it drops to 225? c) What effect can you observe in the...
1. Which of the following statements are correct? a. Economic growth and unemployment are areas on...
1. Which of the following statements are correct? a. Economic growth and unemployment are areas on which macroeconomics focus in contrast with the aggregate output level and employment level on which microeconomics focus. b. An increase in nominal GDP can be the result of an increase in the quantity produced of goods and services and/or an increase in the prices of goods and services produced. c. Stabilisation policies refer to fiscal policy and monetary policy. d. An increase of 20%...
Which of the following is not a determinant of the demand for oat cereals? Price of...
Which of the following is not a determinant of the demand for oat cereals? Price of oats used ot make the cereals Price of milk. Price wheat cereals. The expected price of oat cereals.
If autonomous consumption is $1000, the MPC = 0.75, net taxes = $500, investment spending =...
If autonomous consumption is $1000, the MPC = 0.75, net taxes = $500, investment spending = $800, and govt purchases = $500, and NX = $0, what is equilibrium GDP? Question 1 options: $1,800 $1,925 $2,566.70 $7,200 $7,700 Question 2 (1 point) The focus of the short-run macro model is on the role of Question 2 options: spending in explaining economic fluctuations labor in explaining economic fluctuations financial markets in explaining economic fluctuations output in explaining economic fluctuations resources in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT