Effective demand depends on -

A. capital-output ratio
B. output-capital ratio
C. total expenditure
D. supply price
Answer» D. supply price
Explanation: Effective Demand is "the demand in which the consumer are able and willing to purchase at conceivable price" simply saying if the product price is low more will buy; but if the rates go high then the quantity of the demand goes down. Keynes used Iwo terms: Aggregate Demand Function or Price and Aggregate Supply Function or Price to explain the determination of effective demand.
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