[Solved] Who defined investment as "the construction of a new capital asset like machinery or factory building"?

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Q.	Who defined investment as "the construction of a new capital asset like machinery or factory building"?
A.	Hansen
B.	J.M. Keynes
C.	Harrod
D.	J.R. Hicks
Answer» B. J.M. Keynes
Explanation: Investment expenditure refers to the creation of new assets i.e. an addition to the stock of existing capital assets. According to Keynes investment demand depends upon two factors: (1) Expected rate of profit which he calls as Marginal Efficiency of Capital (MEC). Investment demand increases with the increase in the expected rate of profit; (2) the rate of interest (IR). Investment demand decreases with the increase in the rate of interest.

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