Question : Which of the following statement are true?

Autonomous investment is directly influenced by the income level.

Induced investment is made when marginal efficiency of investment is more than the rate of interest.

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

Question : Which of the following statement are true?

Autonomous investment is directly influenced by the income level.
Induced investment is made when marginal efficiency of investment is more than the rate of interest.

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.

Team Careers360 · Accepted Answer

Correct Answer: Statement 1 is false, statement 2 is true.

Solution : Induced investment is directly influenced by the income level.
Induced investment is made when marginal efficiency of investment is more than the rate of interest.
Hence, Option D is correct.

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Question : Which of the following statement are true?

Autonomous investment is not affected by changes in the level of income.

Autonomous investment is not guided solely by the profit motive.

Question : Which of the following statement are true?

Structural unemployment is related with the change of job in the dynamic economy.

Induced investment is generally done by the government sector while autonomous investment is done by the private

Question : Which of the following statement are true?

Foreign aid against earthquakes victim is revenue expenditure.

Dividends on investment made by government is capital receipts.

Question : Which of the following statement are true?

Repo rate of interest is paid by the commercial bank and reverse repo rate is paid by RBI.

Fiscal policy always increases revenue for the government.

Question : Which of the following are true?

Gross investment can be equal to net investment.

In final goods, no value is to be added.