If the rate of interest is fixed, the MFC of capital is equal to the interest rate.

Name: If the rate of interest is fixed, the MFC of capital is equal to the interest rate.
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The Marginal Efficiency of Capital (MEC) is equal to the interest rate when the rate of interest is fixed, as firms will invest until the point where the cost of borrowing (interest rate) equals the return on the last unit of investment (MEC).

If the Rate of Interest Is Fixed, the MFC of Capital