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
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.
Question : Keynes discusses the equilibrium level of output, using the concept of:
Question : _________________________ refers to the investment which is not affected by changes in the level of income and is not induced solely by profit motive.
Question : _________________ refers to the investment which depends on the profit expectations and is directly influenced by income level.
Question : Which type of investment is income elastic?
Question : Which of the following is a fixed-income security?
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