What Is Autonomous Investment?

Autonomous investment is one of the two types of investments i.e. Autonomous investment and Induced investment. Autonomous investments are the investments undertaken by corporate firms without consideration of macro-economic factors especially GDP and national income. The national patterns of income and production do not affect their business decisions, hence making them independent of income factor. However, they are affected by non-income factors such as interest rate, return expectations, capital assets, technology and capital prices.