Difference between Autonomous Investment Expenditure?and?Induced Investment Expenditure with examples.

Dear Student
Autonomous Investment Induced Investment
1. They are regular or normal investment that doesn't affected by the income level. 1.  They are those investment 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.
4. For example construction of roads, railways etc by the government are considered as autonomous investment. Investment by government in public utilities. 4.  For example construction of building by private sector that will help them to increase their productivity and will help in boosting the economy by creating more jobs. 
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Regards 
 

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