Given the equation of the consumption function as $C =\bar C + cY$, what does $\bar C$ donate?

autonomous consumption.

The correct answer is Option (4) → autonomous consumption.

In consumption function $C =\bar C + cY$ 

• $\bar C$ represents autonomous consumption, i.e., the minimum level of consumption that occurs even when income (Y) is zero.

• It reflects the basic consumption needs financed through past savings or borrowings.