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Question

The investment which is independent of the level of income is called a(an) investment.


A
autonomous
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B
induced
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C
fixed
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D
inventory
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Solution

The correct option is A autonomous
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. Induced investment refers to that investment which changes as the level of income changes in the economy.


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