Autonomous Investment

Definition of Autonomous Investment: Autonomous Investment is the level of investment independent of National output. This will include Government investment, investment to replace worn out capital and any other type of investment that is not dependent on changes in GDP.

The accelerator theory suggests that investment is highly volatile and this induced investment is highly volatile, but its volatility is reduced by the significant role played by autonomous investment.

This entry was posted in . Bookmark the permalink.
By on November 28th, 2012