Q.What is Autonomous Investment ?

Autonomous investment is income-inelastic investment — it does not change with the level of income or output.

• Meaning: Autonomous investment is that part of total investment which is independent of the level of national income. It is not motivated by profit or by current demand but by factors such as inventions and innovations, growth of population, cost of capital, and government/social welfare programmes.
• Graphical form: Because it is unrelated to income, its curve is a horizontal (parallel to the income axis) straight line.
• Contrast: It is opposite to induced investment, which increases as income and output increase. …