distinguish between autonomous and motivated investment
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(i) Induced investment is income-elastic (i.e., rise in level of national income implies rise in level of investment) whereas Autonomous investment is income-inelastic. ... (iii) Induced investment is determined by consideration of profit, whereas Autonomous investment is determined by consideration of social welfare
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Autonomous Investment means an investment which remains unaffected by the changes in the level of income, rate of interest and rate of profit. On the contrary, induced investment is one which is positively related to the level of income, output and profit.
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