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What does the Marginal Efficiency of Capital (MEC) determine?
  • a)
    The level of total purchasing in the economy.
  • b)
    The optimum capital stock in an economy at each level of interest rate.
  • c)
    The overall financial health of a firm.
  • d)
    The rate of interest set by the central bank.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What does the Marginal Efficiency of Capital (MEC) determine?a)The lev...
The MEC determines the optimum capital stock in an economy at each level of interest rate. It indicates whether investing in new capital assets is worthwhile by comparing the prospective yield with the supply price.
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What does the Marginal Efficiency of Capital (MEC) determine?a)The level of total purchasing in the economy.b)The optimum capital stock in an economy at each level of interest rate.c)The overall financial health of a firm.d)The rate of interest set by the central bank.Correct answer is option 'B'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What does the Marginal Efficiency of Capital (MEC) determine?a)The level of total purchasing in the economy.b)The optimum capital stock in an economy at each level of interest rate.c)The overall financial health of a firm.d)The rate of interest set by the central bank.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What does the Marginal Efficiency of Capital (MEC) determine?a)The level of total purchasing in the economy.b)The optimum capital stock in an economy at each level of interest rate.c)The overall financial health of a firm.d)The rate of interest set by the central bank.Correct answer is option 'B'. Can you explain this answer?.
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