Ayushi posted an Question
August 14, 2020 • 04:51 am 30 points
  • UGC NET
  • Economics

8. which of the following statements is true with respect to mec? 8. (1) the concept was given by the classical school (2) it is positively related with expecte

8. Which of the following statements is true with respect to MEC? 8. (1) The concept was given by the classical school (2) It is positively related with expected series of annuities (3) It is positively related with supply price of capital assets (4) It is high during recession

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    Nidhi taparia Best Answer

    Option (2) is correct. As expected series of annuities (or the return or yield from investment) rises, MEC or marginal efficiency of capital will also rise. When the former falls, the latter also follows. The concept of MEC was given by Keynes.

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