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Effective demand depends on
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- capital-output ratio
- output-capital ratio
- total expenditure
- supply price
- capital-output ratio
Correct Option: D
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 two terms: Aggregate Demand Function or Price and Aggregate Supply Function or Price to explain the determination of effective demand.