Induced Autonomous Investment Assignment Help | Induced Autonomous Investment Homework Help

Difference between Induced and Autonomous Investment

Induced Investment
Autonomous Investment
1. Profit
It depends upon the profit
expectations of the entrepreneurs.
It does not depend upon profit.
2.Income elasticity
An increase in the level of income raises the level of induced investment and vice-versa. In other  words. Its curve slopes upwards.
Autonomous investment is
Unaffected by the changes in the level of income. In other words, it is perfectly income inelastic.
It is income elastic.
Its graph is parallel to the X-axis.
3. Sector
Induced investment is generally undertaken in the private sector as private investment, which depends upon the marginal efficiency of capital and the market rate of interest.
Most of investment made by
the government as public investment
is autonomous investment, which is
motivated by public welfare.
4. Determining factors
Besides income, induced investment depends upon the innovations, the innovations, the government taxation policy, the size as well as composition of the  population etc. Political climate also affects also investment. Instability of the government causes a great hevok.
Autonomous investment depends upon socio- economic and political conditions in the country.
Increase in the government budget
allocations due to improvement in technology, the discovery of new resources, the growth of  population or the autonomous investment.
Otherwise may also change.
Consequently, its curve may shift
upwards or downwards.



For more help in Induced and Autonomous Investment please click the button below to submit your homework assignment