Q. Autonomous investment was distinguished from induced investment by__
Answer: Schumpeter
Notes: Creative destruction: Schumpeter differentiated between two types of investment which he called motivated and autonomous. Driven investment arose from the discrepancy between supply and demand and from autonomous investment from resources and technology created by entrepreneurs. He also introduced the concept of "saving up" which is different from saving in the neoclassical growth model. Saving is that part of production which is withheld from investment and consumption.

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