Question
By whom was the autonomous investment separated from induced investment ?
Answer: Option C
Answer: (c)
Under his concept of creative destruction, Schumpeter distinguished between two types of investment that he called induced and autonomous.
Induced investment arose from the discrepancy between supply and demand and autonomous investment from resources and technology created by the entrepreneurs.
He also introduced a concept of "saving up" which is different from saving in the neoclassical growth models. Saving up constituted the part of the output that is withheld from investment and consumption.
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Answer: (c)
Under his concept of creative destruction, Schumpeter distinguished between two types of investment that he called induced and autonomous.
Induced investment arose from the discrepancy between supply and demand and autonomous investment from resources and technology created by the entrepreneurs.
He also introduced a concept of "saving up" which is different from saving in the neoclassical growth models. Saving up constituted the part of the output that is withheld from investment and consumption.
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