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
Correct Answer: Induced investment
Solution : Induced investment refers to the investment which depends on the profit expectations and is directly influenced by income level.
Hence, Option B is correct.
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 : 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
Question : Which of the following statement are true?
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Question : Which type of investment is income elastic?
Option 1: Induced investment
Option 2: Autonomous investment
Option 3: Both A and B
Option 4: Neither A nor B
Question : Investment and savings are kept equal through a change in the level of
Option 1: Consumption
Option 2: Investment
Option 3: Government expenditure
Option 4: Income
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