INDUCED INVESTMENT: Business investment expenditures that depend on income or production (especially national income or gross national product). An increase in national income triggers an increase in induced investment expenditures. Induced investment is graphically depicted as the slope of the investment line and is measured by the marginal propensity to invest. The induced relation between income and investment, as well as other induced expenditures, form the foundation of the multiplier effect triggered by changes in autonomous expenditures.

     See also | investment expenditures | national income | gross domestic income | slope | investment line | marginal propensity to invest | autonomous investment | induced investment | induced expenditure | autonomous expenditure | induced saving | multiplier | accelerator |

INDUCED INVESTMENT, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2026. [Accessed: January 12, 2026].

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