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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

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