Question

how is K related to MPS?​

Answer 1

here is yøur answer

K = 1/1-MPC = 1/MPS

K = 1/1-MPC = 1/MPSIf MPC is high, K will also be high but if MPC is low, K will also be small as proved in the following examples. has gone up from 4 to 5. Thus, K varies directly with value of MPC. In short, higher the value of MPC, higher will be the value of multiplier.

Answer 2

Explanation:

B) There is inverse relationship between K and MPS, i.e., lower the value of MPS, higher is the value of K- If MPS is high, K will be low but if MPS is low, K will be high. For example, if value of MPS = 3, value of K will be 1/3 as proved in the following example.