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      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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