Autonomous expenditure is spending that is: Multiple Choice what is spent when income changes in the...

Autonomous expenditure is spending that is:

Multiple Choice

what is spent when income changes in the economy.
that is determined by the government.
depends on the level of income in the economy.
not sensitive to the level of income in the economy.

Solutions

Expert Solution

Since the autonomous expenditure is that expenditure that does not depends on the income level of the economy. It means it is independent of change in the income of the economy.

Hence it can be said that Autonomous expenditure is spending that is not sensitive to the level of income in the economy.

Hence option fourth is the correct answer.

Rahul Sunny answered 1 year ago

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