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Question : Which type of investment is income elastic?

Option 1: Induced investment

Option 2: Autonomous investment

Option 3: Both A and B

Option 4: Neither A nor B

 


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: Induced investment


Solution : Induced investment is income elastic in nature. It increases with the increase in income level.
Hence, Option A is correct.

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