When economists say that private investment is "autonomous," they mean that it:
A) will never change.
B) is not dependent on the current level of disposable income.
C) is determined by the "animal spirits" of business decision makers.
D) is determined by the level of saving.

Question

Quizplus · Accepted Answer

Autonomous private investment is not dependent on the current level of disposable income. This means that it is not influenced by factors such as changes in income levels, interest rates, or government policies, but rather by long-term expectations and investment opportunities.

When Economists Say That Private Investment Is "Autonomous," They Mean