Difference between Induced investment and Autonomous investment.

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 Difference between Induced investment and Autonomous investment.

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  1. BASIS FOR COMPARISON AUTONOMOUS INVESTMENT INDUCED INVESTMENT
    Meaning Autonomous investment is commonly linked with the determinants like new resources, population growth, increase in labor force, technological innovations, etc. Induced investment is the type of investment which is associated with the current, income, output, sales and profit.
    Figure autonomous-investment induced-investment
    Nature Income Inelastic Income-elastic
    Relation with national income Unrelated to national income Positively related to national income
    Influenced by Exogenous Factors Endogenous Factors
    Demand It affects the demand for goods and services. It is influenced by the demand for goods and services.
    Determined by Social Welfare Profit Motive
    Investment Curve Parallel to the X-axis Slopes upwards to the right
    Undertaken by Public Authorities like Central, state or Local Self Government. Private Individuals and Firms.

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