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Question
Calculate the values of the multiplier if MPC = 1, 0 and `9/10`.
Numerical
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Solution
Multiplier (K) = `1/(1-"MPC")`
MPC = 1
K = `1/(1-1)`
= `1/0`
= ∞
MPC = 0
K = `1/(1-0)`
= `1/1`
= 1
MPC = `9/10`
K = `1/(1 - 9/10)`
= `1/(1-0.9)`
= `1/0.1`
= 10
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Chapter 20: Multiplier - I : Static and Dynamic - TEST QUESTIONS [Page 20.23]
