Marginal Efficiency of Capital (MEC) & Marginal Efficiency of Investment (MEI) converge perfectly, when :
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UGC-NET 2024 Question 48: Consumption and investment
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Consumption and investment has come up 74 times in 7 exams since 2005.
What this question tests
This question is on Marginal efficiency of capital and the accelerator, part of Consumption and investment in Macroeconomics.
How expected returns, interest rates and output growth drive investment.
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