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    5. A firm should increase investment when :

    Question

    A firm should increase investment when

    :
    A MEC < i Correct Answer Incorrect Answer
    B MEC = i Correct Answer Incorrect Answer
    C MEC > i Correct Answer Incorrect Answer
    D MEC = 1 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    A firm should increase investment when Marginal efficiency of capital is greater than i.

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