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By whom was the autonomous investment separated from induced investment ?
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- Schumpeter
- Malthus
- Joan Robinson
- Adam Smith
- Schumpeter
Correct Option: A
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 output that is withheld from investment and consumption.