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
Correct Answer: Induced investment
Solution : Induced investment is income elastic in nature. It increases with the increase in income level. Hence, Option A is correct.
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 : _________________________ 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 : Keynes discusses the equilibrium level of output, using the concept of:
Option 3: both (a) and (b)
Option 4: none
Question : It is assumed to be independent of the level of income. It is autonomous in nature.
Option 1: Consumption expenditure
Option 2: Investment expenditure
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