calculate the multiplier for the following cases.\ncase\tmultiplier\nmps = 0.25\t4\nmpc = 5/6\t6\nmps =…
calculate the multiplier for the following cases.\ncase\tmultiplier\nmps = 0.25\t4\nmpc = 5/6\t6\nmps = 0.125\t8\nmpc = 6/7\t□
Answer
Explanation:
Step1: Recall the multiplier formula
The multiplier $k=\frac{1}{MPS}$ or $k = \frac{1}{1 - MPC}$. Since we have $MPC=\frac{6}{7}$, we use the second - formula.
Step2: Calculate the multiplier
$k=\frac{1}{1-\frac{6}{7}}=\frac{1}{\frac{7 - 6}{7}}=\frac{1}{\frac{1}{7}} = 7$
Answer:
7