Investment Function

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se van Purnia -— : md Be is du 4 4 a ee tke Atha its thes Cxiberditaie, = wiltateal of pusatiniss of naan _aeés) _ ti a eg y rept = Swern on foe) 1Ay ng y Le - y “The fnvertmint Pypevolbig ih asd piod ) An On 2 j under wo theadl !- DU Syetu cect Anvedtrront | 1 : 4 : ani gloat f_4 2) Aretornonous frsastyidynte ei ) , Bchmmomous dnoeetount 2 ) fi Aad winerae & i; ; ) o|| Butomonous envest ment ong doe: tho ) Lnvestmint which La oak apt ) in Dre tevd r 1S l nor VS poveysl— ‘ ’ st t)_ Fneome. ‘Use net snt-lwancecl mtome . || Autonpnous envegdVent ace fobends m Sw octal wasedbei ed pt Qs om vs 4 ho Induced Investment Vs Autonomous Investment: oT Induced investment It is driven by profit motive, i.e. it depends on profit expectations. Autonomous investment ] It is done for social welfare and not for profit. It is unaffected by changes in income level. It is income elastic, i.e. increase in income level raises its level, Its curve slopes upwards as it is Its curve is parallel to X-axis as it is income elastic. income inelastic. It is generally done by the government sector. It is generally done by the private sector.

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