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Which of the following is a characteristic of induced investment?
  • a)
    It is not influenced by changes in income or interest rate.
  • b)
    It remains constant regardless of economic conditions.
  • c)
    It increases as national income rises.
  • d)
    It is completely unrelated to the level of employment.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following is a characteristic of induced investment?a)It ...
Induced investment is dependent on the level of income, and it increases as national income rises. This type of investment responds to changes in economic conditions.
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Which of the following is a characteristic of induced investment?a)It ...
Characteristics of Induced Investment:

Increases as national income rises:
Induced investment is directly related to the level of national income. As national income rises, businesses tend to invest more in order to meet the increasing demand for goods and services. This type of investment is driven by the expectation of higher profits due to increased consumer spending.
Therefore, the correct answer is option 'C' - Induced investment increases as national income rises.
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Which of the following is a characteristic of induced investment?a)It is not influenced by changes in income or interest rate.b)It remains constant regardless of economic conditions.c)It increases as national income rises.d)It is completely unrelated to the level of employment.Correct answer is option 'C'. Can you explain this answer?
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Which of the following is a characteristic of induced investment?a)It is not influenced by changes in income or interest rate.b)It remains constant regardless of economic conditions.c)It increases as national income rises.d)It is completely unrelated to the level of employment.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Which of the following is a characteristic of induced investment?a)It is not influenced by changes in income or interest rate.b)It remains constant regardless of economic conditions.c)It increases as national income rises.d)It is completely unrelated to the level of employment.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is a characteristic of induced investment?a)It is not influenced by changes in income or interest rate.b)It remains constant regardless of economic conditions.c)It increases as national income rises.d)It is completely unrelated to the level of employment.Correct answer is option 'C'. Can you explain this answer?.
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