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What determines induced investment in the economy?
  • a)
    Government spending decisions.
  • b)
    The marginal efficiency of capital and the rate of interest.
  • c)
    Consumer saving patterns.
  • d)
    The level of international trade.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What determines induced investment in the economy?a)Government spendin...
Induced investment is determined by the marginal efficiency of capital (expected profitability of investment projects) and the rate of interest. These factors influence investment decisions in response to changes in economic conditions.
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What determines induced investment in the economy?a)Government spending decisions.b)The marginal efficiency of capital and the rate of interest.c)Consumer saving patterns.d)The level of international trade.Correct answer is option 'B'. Can you explain this answer?
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