Economics · Keynesian Business Cycles
According to Keynes, during an economic depression, investment demand becomes extremely weak mainly due to a:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Sharp rise in real wages
- 2Declining marginal efficiency of capital✓
- 3Excessive accumulation of household savings
- 4High rate of price inflation
Correct answer
Declining marginal efficiency of capital
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