Search results
Results From The WOW.Com Content Network
The term “marginal efficiency of capital” was introduced by John Maynard Keynes in his General Theory, and defined as “the rate of discount which would make the present value of the series of annuities given by the returns expected from the capital asset during its life just equal its supply price”. [1]
The 'marginal efficiency of capital' is defined as the annual revenue which is expected to be yielded by an extra increment of capital as a proportion of its cost. The 'schedule of the marginal efficiency of capital' is the function which, for any rate of interest r, gives us the level of investment which will take place if all opportunities ...
The Incremental Capital-Output Ratio (ICOR) is the ratio of investment to growth which is equal to the reciprocal of the marginal product of capital. The higher the ICOR, the lower the productivity of capital or the marginal efficiency of capital. The ICOR can be thought of as a measure of the inefficiency with which capital is used. In most ...
The horizontal blue line I (r ) is the schedule of the marginal efficiency of capital whose value is independent of Y. The schedule of the marginal efficiency of capital is dependent on the interest rate, specifically the interest rate cost of a new investment.
Keynes does not accept the quantity theory. He writes effective demand [meaning money income] will not change in exact proportion to the quantity of money. [17] The correction [18] is based on the mechanism we have already described under Keynesian economic intervention. Money supply influences the economy through liquidity preference, whose ...
These are the stories you liked, loved and shared the most in 2015.
marginal product of capital; marginal rate of transformation, the rate at which one output or result must be sacrificed in order to increase another output or result; marginal revenue product; marginal propensity to save and consume; marginal tax rate; marginal efficiency of capital; Marginalism is the use of marginal concepts to explain ...
Luke Grimes says it's hard work to remain a Hollywood heartthrob — but that's not why he's committed to the gym.. The Yellowstone actor, 40, revealed to Men’s Health that he’s figuring out ...