Question

Explain the difference between autonomous and induced investment with diagrams

Answer 1

autotonoms investment is that investment which is independent of the level of the income or profits.thus , it is not included by any changes in income .2)induced investment is done with the profit motive where as autotonomus investment is done for the welfare of the people.

Answer 2

Answer:

Explanation:

(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. ... (iv) Induced investment curve is positively sloped (Fig. (a)) but Autonomous investment curve is horizontal straight line parallel to X-axis, (Fig.