Business Studies, asked by lomash7137, 1 year ago

Marginal efficiency of capital and business expectations on

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Answered by ajmal64

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Thus, Keynes' Theory of the marginal efficiency of capital is based on the strategic role of business expectations. ... Out of the two determinants (supply price and prospective yield) of the marginal efficiency of capital, it is the prospective yield which gives its most important characteristic instability.

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