Question

What is meant by induced investment.

Answer 1

Hyyy dear
Definition of induced investment. : investment in inventories and equipment which is derived from and varies with changes in final output —distinguished from autonomous investment.
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Answer 2

Induced Investment is a type of investment which is dependent on the rate of interest, profit, and level of income.

Explanation:

• An investment that response to the change in the level of national income or to the changes in the total rate of interest is called induced investment.  
• Induced investment is directly proportional to the national income.
• When there's a rise in the national income, the investment is also bound to increase.
• On the other hand, the investment is inversely proportional to the change in the rate of interest.