Question

Which of the following would shift the ‘Marginal Efficiency of Investment’ (MEI) schedule to the right?

A A fall in expected annual returns on projects Correct Answer Incorrect Answer
B A rise in the supply price of projects Correct Answer Incorrect Answer
C A fall in the supply price of projects Correct Answer Incorrect Answer
D A rise in the rate of interest Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

A fall in the supply price of projects would shift the ‘Marginal Efficiency of Investment’ (MEI) schedule to the right.

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