Question: Why does an increase in income taxes not effect autonomous consumption? Question 22 Determine the effect of the following events on autonomous consumption (AC) and/or

Why does an increase in income taxes not effect autonomous consumption?

Question 22 Determine the effect of the following events on autonomous consumption (AC) and/or autonomous investment (AI). If the event has. an impact on the autonomous term(s), indicate which term changes and to the direction. If the event has no effect on AC and/or AI, put down not applicable (NA). Autonomous Component (AC, AI, or NA) Event AC Households expect an increase in the minimum wage in the future. NA An increase in income taxes paid by households AI The reduction of a tax credit on investment. AI A relatively high existing stock of physical capital

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