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Induced investment is primarily influenced by:
  • a)
    Changes in the market interest rate.
  • b)
    Innovations and inventions.
  • c)
    Government policies and regulations.
  • d)
    Changes in the supply of money.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Induced investment is primarily influenced by:a)Changes in the market ...
Induced investment is profit or income motivated and is influenced by factors like changes in prices, wages, interest rates, and demand. Changes in the market interest rate can affect the cost of borrowing and the potential return on investment, thus influencing induced investment.
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Induced investment is primarily influenced by:a)Changes in the market interest rate.b)Innovations and inventions.c)Government policies and regulations.d)Changes in the supply of money.Correct answer is option 'A'. Can you explain this answer?
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