Question

Identify the correctly matched pair from Column A to that of Column B:

Column A	Column B
(1) Private Consumption Expenditure	(a) Market Rate of Interest
(2) Private Investment Expenditure	(b) Total Expenditure
(3) Autonomous Investment	(c) Construction of Roads
(4) Aggregate Demand	(d) Level of personal disposable income

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

3 - (c)

Explanation:

Autonomous investment is the portion of the total investment that is unaffected by changes in income, interest rate, or profit rate. Investment in public utility services is considered an autonomous investment because government investments do not rely on decisional profit or loss.