Distinguish between:
2) Autonomous Investment and Induced Investment
Autonomous Investment
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Induced Investment
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It represents that part of investment, which is independent of the income level and interest rate.
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It is a dependent function of the income and interest rate.
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It is income inelastic.
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It is not income inelastic.
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It remains constant throughout all levels of incomes and interest rates.
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It is a positive function of income but is a negative function of the rate of interest.
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