Keynesian Investment Theory & Capital Efficiency 📈

What's Keynesian theory in simple terms?
Keynesians believe that, because prices are somewhat rigid, fluctuations in any component of spending—consumption, investment, or government expenditures—cause output to change. If government spending increases, for example, and all other spending components remain constant, then the output will increase.

What is marginal efficiency?
The marginal efficiency of capital (MEC) is the rate of discount which would equate the price of a fixed capital asset with its present discounted value of expected income.

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