Economy, asked by manavpvaidya7, 5 months ago

2. The theory attributes business cycles to changes in marginal efficiency of capital

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Answered by tanishkarawat509

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Answer:

According to Keynes, business cycle is caused by variations in the rate of investment caused by fluctuations in the Marginal Efficiency of Capital. The term 'marginal efficiency of capital' means the expected profits from new investments. ... In his business cycle theory, Keynes assigns the major role to expectations.

Answered by arpitachaurasiya301

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Answer:

Answer:

According to Keynes, business cycle is caused by variations in the rate of investment caused by fluctuations in the Marginal Efficiency of Capital. The term 'marginal efficiency of capital' means the expected profits from new investments. ... In his business

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