Question

यदि MPC=0.5 तो (K) गुणक क्या होगा।
(क) 1/2
(ख) 1
(ग) 2
(घ) 0​

Answer 1

Explanation:

ग) 2......................

Answer 2

If the MPC is 0.5 then the value of the multiplier will be option c i.e. 2.

The formula for multiplier is K = 1/(1-MPC)

⇒ 1/(1-0.5)

⇒1/0.5

⇒2

MPC is the marginal propensity to consume. It is the increase in the consumption for every additional unit of income.

Whereas, multiplier measures the change in variable y (which is usually multiple times of the original change) as a result of change in variable x.