Question

What is Induced Investment..??​

Answer 1

Answer:

Induced Investment : investment in inventories and equipment which is derived from and varies with changes in final output —distinguished from autonomous investment.

Answer 2

"that part of an increase, or decrease, in real INVESTMENT that is brought about by a change in the level of NATIONAL INCOME. For example, a rise in national income accompanied by increased consumption spending that puts pressure on existing supply capacity will encourage businesses to invest in new plant and machinery.

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