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Marginal Efficiency of Capital: Definition and How It Works

The marginal efficiency of capital (MEC) is the expected rate of return from an additional unit of capital investment, a term Keynes introdu...
3 min read
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Managing the economy

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Saddique Ansari • February 04, 2019 • 1 min read

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PRICE LEVEL C I G X M AD
200 300 50 100 50 450 50
180 320 60 105 100 425 160
160 340 70 110 150 400 270
140 360 80 115 200 375 380
120 380 90 120 250 350 490
100 400 100 125 300 325 600
80 420 110 130 350 300 719
60 440 120 135 400 275 820

 


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Declining loan default rates represented by a downward bar chart and arrow.

What Is Constant Default Rate (CDR)?

The Constant Default Rate (CDR) is an annualised measure of the rate at which loans in a pool default. It is commonly used to assess the per...
2 min read

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