WBCS.LIVE practice question

According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations in the:

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Marginal efficiency of capital
  2. Marginal propensity to save
  3. Marginal propensity to consumption
  4. Marginal efficiency to investment

Correct answer and explanation

Correct answer: Marginal efficiency of capital