Difference between autonomous investment and induced investment and public investment
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Autonomous Investment. Definition: The Autonomous Investment is the capital investment which is independent of the economy shifts. This means, any change in the cost of raw material or any change in the salary and wages of labor etc. has no effect on the autonomous investment.
Induced investment is investment expenditures by the business sector that are based on the level of income or production. This is one of two basic classifications of investment. The other is autonomous investment, investment expenditures that are NOT based on the level income or production.
Public investment means funding and allocating resources for projects and services that the private sector cannot successfully deliver on its own.
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