Question

State the meaning of autonomous investment.

Hint:

Autonomous investment is independent of income changes and is often driven by government policies and infrastructure needs.

Answer 1

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.