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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


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: induced investment 
 


Solution : The correct answer is (b) induced investment

Induced investment refers to investment spending that is influenced by changes in the level of income. As income increases, businesses may choose to increase their investment in order to expand production capacity or meet the growing demand for goods and services.

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