Question

If value of MPC is 0.8, find out value of multiplier (K).

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Solution

straight K space equals space fraction numerator 1 over denominator 1 minus MPC end fraction space equals fraction numerator 1 over denominator 1 minus 0.8 end fraction space equals space fraction numerator 1 over denominator 0.2 end fraction space equals space fraction numerator 1 over denominator begin display style 1 fifth end style end fraction space equals space 1 cross times 5 over 1 space equals space 5

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