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Calculate the value of multiplier if …

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Calculate the value of multiplier if the MPS is (a) 0.40 (b) Equal to MPC

    • Posted by Aditi Rawat 4 years, 2 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Yogita Ingle 4 years, 2 months ago

    (a) If MPS = 0.40, then 

    Multiplier (k) = 1/MPS = 1/ 0.40 = 2.5 

    (b) If MPC= MPS, then 

    2 MPS= 1 

    => MPS =1/2 =0.5 

    Multiplier (k) = 1/MPS = 1/ 0.5 = 2 

    4Thank You

    ANSWER
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