A) autonomous investment
B) foreign institutional investment
C) foreign direct investment
D) induced investment
Correct Answer: D
Solution :
Generally, private investment is induced in nature. Induced investment is investment that changes due to a change in income and the interest rate. It is profit-motivated. Autonomous investment is that investment which is not affected by the changes in the level of income (Source: Macroeconomics: Theory and Policy by Agarwal Vanita).
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