Difference between autonomous investment and induced investment

Solution:
Autonomous Investment:
1. Autonomous investment does not depend either on income/ output or rate of interest.
2. The slope of Autonomous Investment curve is horizontal straight line parallel to X-axis.  It states investment remain same at all level of income/output.

Induced Investment:
1. Induced Investment is one which depend  on income/ output or rate of interest.
2. In Induced Investment the curve is upward straight line. It indicates positive relation of Investment with Income.

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