Explain the concept of autonomous ...

[09madisonrousseau09]

Explain the concept of autonomous consumption.

Question 2

U.S. bank notes have no intrinsic value and yet are widely accepted as a medium of exchange. This is a result of:
 a. Gresham's law.
  b. the use of money as a store of value.
  c. the fiduciary monetary system.
  d. the valuation of currency as commodity money.
  e. the gold and silver reserves of the Federal government that backs the currency.

[ntsoane kedibone]

Answer to Question 1

Autonomous consumption is consumption that is not based on income. Such consumption is based on factors like real wealth, interest rates, household debt, future expectations, and tastes & preferences.

Answer to Question 2

c