HSC Arts 12th Board ExamMaharashtra State Board
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Give Reasons Or Explain the Following Statements Autonomous Investment is Not Directly Linked with Profit. - HSC Arts 12th Board Exam - Economics

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Question

 Give reasons or Explain the following statement

Autonomous investment is not directly linked with profit.

Solution

Autonomous investment expenditure refers to the investment expenditure that is independent of the rate of interest and income, In other words, it remains fixed/constant whatever be the level of income or rate of interest. Accordingly, it is not directly linked with profit.

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APPEARS IN

 2013-2014 (October) (with solutions)
Question 2.2.5 | 2.00 marks
Solution Give Reasons Or Explain the Following Statements Autonomous Investment is Not Directly Linked with Profit. Concept: Investment Demand.
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