Investment Function & MEC Notes | Marginal Efficiency of Capital | BA Economics

Detailed BA Economics Macroeconomics notes on Investment Function and Marginal Efficiency of Capital (MEC).

Topics covered:
• Meaning of Investment
• Gross & Net Investment
• Real & Financial Investment
• Autonomous & Induced Investment
• Determinants of Investment
• Marginal Efficiency of Capital (MEC)
• Prospective Yield & Supply Price
• MEC Schedule
• MEC Curve
• Determination of Equilibrium Investment
• Relationship between MEC & Rate of Interest
• Factors affecting MEC

Includes definitions, formulas, diagrams explanation, Keynesian theory and semester exam-oriented notes for quick understanding and revision.