Option 1 -> Average propensity to consume is C/Y, which represents the ratio of total consumption to total income.
Option 2 -> Marginal propensity to consume is represented by 'c' in the equation, showing the change in consumption due to change in income.
Option 3 -> Induced consumption is represented by cY, which is the consumption that depends on the level of income.
Option 4 -> Autonomous consumption is represented by C̄, which is consumption independent of income level.
Hence, Option 4: autonomous consumption -> In the consumption function C = C̄ + cY, C̄ (C-bar) represents autonomous consumption, which is the minimum level of consumption that occurs even when income (Y) is zero. This reflects essential consumption expenditures that households make regardless of their income level, often financed through savings, borrowing, or other means. It forms the intercept of the consumption function on the vertical axis. -> correct