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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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