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Suppose There Is an Increase in Autonomous Consumption

Question 16

Multiple Choice

Suppose there is an increase in autonomous consumption.Specifically,suppose c₀ increases where C = c₀ + c₁YD. This increase in autonomous consumption will cause which of the following to increase?


A) equilibrium income
B) equilibrium disposable income
C) demand
D) all of the above
E) none of the above

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