Autonomous investment is that type of investment which is not affected by a change in the level of income or output.

True

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False

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Solution

The correct option is A True
True.
Autonomous investment refers to that investment which is independent of the level of income in the economy. It remains constant irrespective of the level of income in the economy. It refers to the type of investment which is not affected by a change in the level of income in the economy.

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Similar questions

Calculate Investment expenditure:

National income = 700

Autonomous consumption = 70

MPC = 0.8

Calculate equilibrium level of income from the following:

Consumption expenditure at zero level of income = 60

MPC = 0.9

Investment =100

Autonomous increase in investment always causes an autonomous increase in income.

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