Autonomous real investment spending is
A) the level of investment expenditure required to keep the economy expanding at its current growth rate.
B) the level of investment expenditure that is independent of real GDP.
C) the level of investment expenditure required to replace capital lost to depreciation.
D) the level of investment expenditure that would prevail if interest rates were zero.

Question

Quizplus · Accepted Answer

Autonomous real investment spending refers to the portion of investment that does not depend on the current level of real Gross Domestic Product (GDP). It is determined by factors other than the current income level, such as technological changes, policy decisions, and expectations about future economic conditions.

Autonomous Real Investment Spending Is