shapten = 04 P Theories ob Fecsumphion, savings $ Class no! oF Se es “TAvestmed} fer thar purchasa! of goods » univonsit Leonomie sanee. ‘ Tn the simpla_ Jonmg tavestmant rekens +0 purchase of financial.’ dssats',’ In | an ‘2eonomie sence an that are not ; + gonsume todog but arg used In Yhe Guture to ereot weolth . the building of a Factory ead §o produced goods and the fnvestment on mado by going +o collage op dno! both examples of- investment ia an “Rypos_of investment : There ane twa Aypes of invastmont. ; 4. Autonomous sinvestent— 2, Tnduced, investment 4e-Audonomous frivestment: Tnvestmant whieh donot change With Aha’ ‘changes’ in ineome level . Ps »WUE “74 f my j yt 1s autonomous invastment ' aAtdonomoug investment is the level of investm whieh ie indepondon} of tho nodional oulput- Gt pobdre do Ahe investment made on houses. oad, public buildings and, other part of inbrustracturu. “The government makes such types oP invest mant. A diagram ob avtonomous investment is given below : investment income Ie ¥ Ne carer UGE AT s s To Ta! > Investment 2 E autonomous x Notional ineome 1 0 Th the above Bigure., ‘Tole’ is ‘an autonomous cinvestment jeurve- ‘Investment ts. indibvenent +o _dnergase in the), snottonal., jineome as a result autonomous invattih ate curve is a horizontal > Pega: wah Haight line. _- Tnduted ‘invastmentigin Tavostment- whieh change with the changes ineome levol ts called induced invesiment . Trduced investment is positive ralated to ineome lavel. At o Haigh level of income 2ntrropenmmt are involve +o more viee- versa. A diognam of indueed investment gee) given below + ' cant , Ia Fneome level chat a Ya 4 ‘zAriar (nvest men NEEL ye 4 7 ns _ | ahang, 2° 38 oj Be. Tds Cc n ‘or weoani ot pfok sccm tet Notional income In the above bigure, TdTd’ ts an vindueed | Ghveviment © eurverwhieh, changes inthe level of “wodtionol’ tieome! « AT ocnnayaoh: 2d WD aw aVOAT ayo bir yr po tdtsk . frygade - leis'H Ditkoroneo belwien Autonomous and \Indueed investment. Autonomous “ Indueed 1: Indopendont of 1 Responsive to .enena{ mar want market conditions - “eonditions . wail \ ‘rc Pradomnidlanthy 2 Predominantly x Supp hy’ push" ““domand, pull” %- $+ has no coneeon & Gt depends upon with ineome: - Income . 4 J+ is not fneome voelashe in 2h ob oplgyl tye! gavittally made: by government SAAR? 44 is income elastic. 15 Gh Is generally, done ba prevate, sactor. 6. Autonomus tnvastment squnve rtamains parcallel to OR 6+ Tndueed investment eure moves upwards from Lott to the right : cunts ,TH Detonminants of avestmont/ the factors thod inkluence Ahe_ Level of national ineome / econdma . Th an gconomie, sonee, an ‘investmer is the purchas of goods that ane not consume tnday but are used fa the fulure do ercota wealth. . f f f 4 hod ae iy shore ana two: Factor that) avg aintwence. tn the level ob ‘zeonoma. Theses ane % . ; { 5 4 Expected’ rate: of probits 4 i 2. Roto of interest 1 A Expected rote ob colt + Expected cate ob protits is also Known as managerial aBeiene 0 capital . The rate ob probit expocted From extra unit of capital asset Is Kaown as managerial obsieieneg ob capital.We ion loro poport that low ene sada Shag pete tad houstng aonstreuetfon 07 ‘haigh rates. ‘Such reponts empliad a neogativi volationship — “otinedti MAtenest nate cand Investment. This Polationship appliec to all borm of heighan ietorest— rates ean do reduce, quantity ob Tavestmon} and vice-versa. Be oidd Join sp on ose ) ANT 10% Bapy G2 LIES 9 aa f ’ je ONA 28 usa ay ta