If a person doesn't have any income, what will be her course of action?
a) No consumption
b) Dissavings
c) Borrowing
a) No consumption
b) Dissavings
c) Borrowing
Answer & explanation
Correct answer: option 3
A person will dissave or borrow to maintain autonomous level of consumption. Autonomous consumption is that consumption which pertains even at 0 level of income.