According to Keynes, investment demand depends on which of the following two factors ? (a) Rate of…
Keynes compares the marginal efficiency of capital with the interest rate: (a),(c). Consumer income and MPC are not the direct investment-return comparison. Every other code…
Choose your answer
According to Keynes, investment demand depends on which of the following two factors ?
(a) Rate of interest
(b) Income of the consumer
(c) Marginal efficiency of capital
(d) Marginal propensity to consume Answer from the codes below :
Answer and explanation
Correct answer C
Keynes compares the marginal efficiency of capital with the interest rate: (a),(c). Consumer income and MPC are not the direct investment-return comparison. Every other code includes MPC and excludes one of the two comparison terms.
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UGC NET Economics