Induced investment is a type of investment which is regulated through income and amount of profit. The factors which inducing are changes in income and profit. If there exist a possibility of increase in income and profit, then the induced investment increases and If there is a decreased possibility of income and profit, the induced investment decreases.
Question : _________________________ refers to the investment which is not affected by changes in the level of income and is not induced solely by profit motive.
Option 1: Autonomous investment
Option 2: Autonomous savings
Option 3: Induced savings
Option 4: Induced investment
Question : _________________ refers to the investment which depends on the profit expectations and is directly influenced by income level.
Option 1: Induced savings
Option 2: Induced investment
Option 3: Autonomous savings
Option 4: Autonomous investment
Question : Investment which is dependent of the level of income is called:
Option 1: autonomous investment
Option 2: induced investment
Option 3: fixed investment
Option 4: inventory investment
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