1.

Distinguish between:Autonomous Investment and Induced Investment

Answer»
Autonomous InvestmentInduced Investment
It represents that part of investment, which is independent of the income level and interest rate.It is a dependent function of the income and interest rate.
It is income inelastic.It is not income inelastic
It remains constant throughout all levels of incomes and interest rates.It is a positive function of income but is a negative function of the rate of interest.



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