Multiple Choice Questions on An outward shift in the Marginal Efficiency of Capital should ........ for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

An outward shift in the Marginal Efficiency of Capital should ........

Economics- Phase (I & II) Multiplier and Accelerator 
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    An outward shift in the Marginal Efficiency of Capital should:

    Decrease consumption

    Incorrect Answer

    Increase aggregate demand

    Correct Answer

    Reduce aggregate supply

    Incorrect Answer

    Slow economic growth

    Incorrect Answer
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    Explanation:

    If the MEC shifts outwards then investment should increase because the expected returns are higher; this should boost aggregate demand.

    By: Jyoti Das
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