what will be the effect of increase in income on autonomous consumption?? please answer
Dear student
There will be no effect of increase in income on autonomous consumption because it is fixed irrespective of income.Even if the income is zero still the autonomous consumption cannot be zero. increase in income effect on the marginal propensity to consume but not on autonomous consumption.
Regards
There will be no effect of increase in income on autonomous consumption because it is fixed irrespective of income.Even if the income is zero still the autonomous consumption cannot be zero. increase in income effect on the marginal propensity to consume but not on autonomous consumption.
Regards