Share This Article:

Economic Definition of autonomous investment. Defined.

Offline Version: PDF

Term autonomous investment Definition: 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. Autonomous investment is graphically depicted as the vertical intercept of the investment line relating investment to national income. Changes in autonomous investment, along with changes in other autonomous expenditures, are what trigger the multiplier effect.

 

« autonomous government purchases | autonomous net exports »

Permalink: http://glossary.econguru.com/economic-term/autonomous+investment

Alphabetical Reference to Over 2,000 Economic Terms