Q.

By whom was the autonomous investment separated from induced investment?

A. Schumpeter
B. Malthus
C. Joan Robinson
D. Adam Smith
Answer» A. Schumpeter
Explanation: Under his concept of creative destruction, Schunipeter distinguished between two types of investment that he called induced and autonomous. Induced investment arose from the discrepancy between supply and demand and autonomous investment from resources and technology created by the entrepreneurs. He also introduced a concept of "saving up" which is different from saving in the neoclassical growth models. Saving up constituted the part of out-put that is withheld from investment and consumption.
1.8k
0
Do you find this helpful?
20

View all MCQs in

Economics (GK)

Discussion

No comments yet