Anushka posted an Question
June 04, 2021 • 07:07 am 30 points
  • UGC NET
  • Economics

Can anybody pls explain how ' expectations' affect autonomous investment.

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  • Reshma gupta

    see the attachment...

    cropped1221194345262250468.jpg
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    as per this content, the answer should be both a and b (Technology and Expectation)

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    question is..explanation of effect of expectation on autonomous investment. it is not a question that which effect AI.

  • Rucha rajesh shingvekar best-answer

    Expectations: If the business firms expect an improving economy in the future then they are more likely to increase autonomous investments, even if income is unchanged or falling in the present. The result is an increase in autonomous investments.

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    I think autonomous investment does not depend on income

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