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    				| 1. | Who is marginal efficiency of capital related to investment in an economy | 
| Answer» Answer: Generally, INVESTMENT is attractive when the rate of interest is lower. When the rate of interest is 5%, the investor would expect a return of at LEAST 5% on the investment. In case the marginal EFFICIENCY of capital is lower than the CURRENT rate of interest, investors would RATHER save than make an investment. | |