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How is the Marginal Efficiency of Investment (MEI) related to the rate of interest?
  • a)
    The MEI is a fixed rate that is independent of the rate of interest.
  • b)
    The MEI and the rate of interest have an inverse relationship.
  • c)
    The MEI is always higher than the rate of interest.
  • d)
    The MEI is always lower than the rate of interest.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
How is the Marginal Efficiency of Investment (MEI) related to the rate...
The MEI shows the rate of return expected from a given investment on a capital asset after covering all costs except the rate of interest. It has an inverse relationship with the rate of interest. When the rate of interest is high, investment demand is lower, and vice versa.
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How is the Marginal Efficiency of Investment (MEI) related to the rate of interest?a)The MEI is a fixed rate that is independent of the rate of interest.b)The MEI and the rate of interest have an inverse relationship.c)The MEI is always higher than the rate of interest.d)The MEI is always lower than the rate of interest.Correct answer is option 'B'. Can you explain this answer?
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How is the Marginal Efficiency of Investment (MEI) related to the rate of interest?a)The MEI is a fixed rate that is independent of the rate of interest.b)The MEI and the rate of interest have an inverse relationship.c)The MEI is always higher than the rate of interest.d)The MEI is always lower than the rate of interest.Correct answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How is the Marginal Efficiency of Investment (MEI) related to the rate of interest?a)The MEI is a fixed rate that is independent of the rate of interest.b)The MEI and the rate of interest have an inverse relationship.c)The MEI is always higher than the rate of interest.d)The MEI is always lower than the rate of interest.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How is the Marginal Efficiency of Investment (MEI) related to the rate of interest?a)The MEI is a fixed rate that is independent of the rate of interest.b)The MEI and the rate of interest have an inverse relationship.c)The MEI is always higher than the rate of interest.d)The MEI is always lower than the rate of interest.Correct answer is option 'B'. Can you explain this answer?.
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