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:max_bytes(150000):strip_icc()/Marginal-propensity-to-consume-4193236-FINAL-bc3dbca8eb0542b28fad3fc1d089152f.png "Marginal Propensity to Consume (MPC) in Economics, With Formula")
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![Economics] What is Relation between Investment Multiplier K and MPC?](https://d1avenlh0i1xmr.cloudfront.net/c47b8a3e-77fe-4c3e-83fb-24623e777416/relation-between-k-and-mpc---teachoo.jpg "Economics] What is Relation between Investment Multiplier K and MPC?")
Economics] What is Relation between Investment Multiplier K and MPC?
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Calculate Multiplier when MPC is 4/5 and 1/2 From the calculation, establish the relation between size of Multiplier and size of MPC. When MPC (4)/(5) K=(1)/(1=0.8)=(1)/(0.2)=5 When MPC=(1)/(2) K=(1)/(1-0.5)=2 Observing the same,
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Calculate the value and plan ahead
