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Question

Induced investment is that investment which is undertaken as a result of change in the _____________.

A
level of income
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B
price
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C
investment
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D
all of the above
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Solution

The correct option is A level of income

Induced investment refers to that investment which changes as the level of income changes in the economy. Therefore, it is the type of investment that depends on the level of income in the economy.


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