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Question

Prospective Rate of Profit is also called ___________________.

A
Rate of Interest on Bank Deposits
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B
Marginal Efficiency of Capital
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C
Marginal Utility of Capital Employed
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D
Marginal Revenue
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Solution

The correct option is A Marginal Efficiency of Capital
Marginal efficiency of capital refers to the prospective rate of profit which refers to the prospective rise in the return from the profits of the firm.

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