Question:
State the meaning of autonomous investment.
State the meaning of autonomous investment.
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Autonomous investment is independent of income changes and is often driven by government policies and infrastructure needs.
Updated On: Feb 24, 2025
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Solution and Explanation
Autonomous investment refers to investment that is independent of changes in income levels. It is primarily influenced by government policies, technological advancements, infrastructure development, and strategic economic decisions.
Examples:
- Investment in public infrastructure (roads, railways, power plants).
- Research and development investments.
- Defense and space-related investments.
Conclusion: Autonomous investment remains constant regardless of economic fluctuations and plays a key role in long-term economic stability.
- Investment in public infrastructure (roads, railways, power plants).
- Research and development investments.
- Defense and space-related investments.
Conclusion: Autonomous investment remains constant regardless of economic fluctuations and plays a key role in long-term economic stability.
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