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Q. |
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» A. Natural rate of interest is not equal to market rate of interest |
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