Which of the following concepts are most closely associated with J M Keynes?

Control of money supply

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Marginal utility theory

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Indifference curce analysis

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Marginal efficiency of capital

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Solution

The correct option is A Marginal efficiency of capital
J M Keynes proposed an investment function. He told that the firms rank investments on the basis of their internal rate of return or the marginal efficiency of capital. This means that the firms should choose such projects whose rate of interest is less than their internal rate of return.

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