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
Answer (1)
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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