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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
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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