Question

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

Answer 1

(a) Multiplier (k) `=(1)/(MPS)=(1)/(0.40)=2.5`
(b) If MPS = MPC , then MPS = 0.5 [:. MPS + MPC = 1]
Multiplier (k) `= (1)/(MPS)= (1)/(0.5)=2`