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    Exam 26: The Macroeconomic Environment of Business
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    The Relationship Between Investment as a Proportion of National Income
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The Relationship Between Investment as a Proportion of National Income

Question 115

Question 115

True/False

The relationship between investment as a proportion of national income (i) and the potential rate of economic growth (gp) is given by the formula: gp = i x MEC (where MEC = marginal efficiency of capital).

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