Economics · Macroeconomics
Assertion (A): The Marginal Efficiency of Investment (MEI) curve is steeper than the Marginal Efficiency of Capital (MEC) curve. Reason (R): While MEC is based on a given supply price of capital and depicts the relationship between interest rate and the optimum capital stock, MEI is based on induced change in capital price due to increased demand and depicts the relationship between interest rate and investment flow (new units above existing stock).
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A is false but R is true
- 2A is true but R is false
- 3Both A and R are true, but R is NOT the correct explanation of A
- 4Both A and R are true, and R is the correct explanation of A✓
Correct answer
Both A and R are true, and R is the correct explanation of A
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Macroeconomics MCQs →Want more practice questions on Macroeconomics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Macroeconomics