MCQOPTIONS
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| 1. |
According to Hayek s overinvestment theory of trade cycle, fluctuation of investment occurs when |
| A. | Natural rate of interest is not equal to market rate of interest |
| B. | Natural rate of interest is equal to market rate of interest |
| C. | Natural rate of interest is equal to the rate of inflation |
| D. | None of the above |
| Answer» B. Natural rate of interest is equal to market rate of interest | |