Solve the question of and select the option from the choices A through D/E. Check your Answer and view the explanation.
Question: 7
Which of the following concepts are most closely associated with J. M. Keynes?
- Control of money supply
- Marginal utility theory
- Indifference curve analysis
- Marginal efficiency of capital
Show/Hide Explanation
Correct Answer: D
None
Sol. The marginal efficiency off capital (MEC) is that rate of discount which would equate the price of a fixed capital asset with its present discounted value of expected income. The term “marginal efficiency of capital” was introduced by John Maynard Keynes in his General Theory.