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Question
Induced investment expenditure refers to ______.
Options
the investment made by a firm
the expenditure made by a firm remains constant
the investment made in the economy that remains unaltered
total investment expenditure changes with changes in national income
MCQ
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Solution
Induced investment expenditure refers to total investment expenditure changes with changes in national income.
Explanation:
Induced investment is defined as investment made as a result of a change in income level. It rises in tandem with national income. As a result, it is directly tied to the country's national income.
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