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In an economy, investment increases by 120 crore. The value of multiplier is 4. Calculate MPC.

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In an economy, investment increases by 120 crore. The value of multiplier is 4. Calculate MPC.
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`K=(1)/(1-MPC)`
`4=(1)/(1-MPC) or 4-4MPC=1`
`4MPC=4-1=3`
`"Hence" MPC=(3)//(4)=0.75`
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