English

If the value of the multiplier is 4, calculate the value of MPC and MPS. - Economics

Advertisements
Advertisements

Questions

If the value of the multiplier is 4, calculate the value of MPC and MPS.

If the value of the multiplier is 4, what will be value of MPC and MPS.

Numerical
Advertisements

Solution

k = 4

k = `1/(1-"MPC")`

4 = `1/(1-"MPC")`

1 - MPC = `1/4`

1 - MPC = 0.25

MPC = 1 − 0.25

∴ MPC = 0.75

MPS = 1 − MPC 

MPS = 1 − 0.75

∴ MPS = 0.25

shaalaa.com
  Is there an error in this question or solution?
Chapter 12: Theory of Income and Employment - NUMERICAL QUESTIONS [Page 233]

APPEARS IN

Frank Economics [English] Class 12 ISC
Chapter 12 Theory of Income and Employment
NUMERICAL QUESTIONS | Q 8. | Page 233
Frank Economics [English] Class 12 ISC
Chapter 12 Theory of Income and Employment
NUMERICAL QUESTIONS | Q 12. | Page 233
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×