Autonomous investment

Autonomous Investment
Definition of Autonomous Investment: Autonomous Investment is the level of investment independent of National output.

AUTONOMOUS INVESTMENT: Business investment expenditures that are unrelated to income or production (especially national income or gross national product). These are investment expenditures that would occur even if national income was zero.

Multiplier The ratio of the change in the equilibrium level of real national income to the change in autonomous expenditures; the number by which a change in autonomous investment or autonomous consumption, for example, ...

See also: Feedback, Tip, National income, Perfect competition, Gross domestic product