Difference between autonomous and induced savings

Solution 
Autonomous Saving Induced saving
1. They are regular or normal saving that doesn't affected by the income level. 1.  They are those saving that are done with the motive of earning profits, they get affected with the level of national income.
2.  It is income-inelastic as it doesn't affected by income level. 2. It is income -elastic affected by change in income.
3.  Its curve is horizontal straight line i.e. parallel to x- axis. 3. Its curve is positively sloped alike supply curve.



 

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