How Does Autonomous Investment Induce Investment?

Autonomous investment is thought to be an investment that the business sector undertakes, no matter what the state of the economy is. Autonomous investment does not induce investment. It is just one of the two basic classifications of investment. The other form or classification is called induced investment. Induced investment is that investment that is dependent on income. When production and income change, some adjustment of expenditures needs to be made, and that adjustment is in the form of induced investment.