When economists say investment is autonomous,they mean that
A)investment is independent of the level of optimism about economic conditions
B)the forces motivating investment are not economic
C)investment is independent of the level of income
D)investment is independent of the level of saving
E)investment is independent of the rate of interest

Question

Quizplus · Accepted Answer

When economists say investment is autonomous, they mean that it is independent of the level of income. This means that even if income decreases, investment may not necessarily decrease, and vice versa. Autonomous investment is usually attributed to factors such as changes in technology, government spending, and business expectations about future demand, which don't necessarily depend on the level of income in the economy.

When Economists Say Investment Is Autonomous,they Mean That