If Multiplier is   1/1-MPC  and MPS+MPC=1,  MPC= Marginal propensity to consume and MPS= marginal propensity to save. Using this formula          and MPC is 0.9 multiplier is __________ and if MPS =0.4  multiplier is ________________ a   10 and 10 b   1 and 2.5 c   10 and 2.5 d   1.111 and 1.666

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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If Multiplier is   1/1-MPC  and MPS+MPC=1,  MPC=

Marginal propensity to consume and MPS= marginal propensity to save. Using this formula 

        and MPC is 0.9 multiplier is __________ and if MPS =0.4  multiplier is ________________

a  

10 and 10

b  

1 and 2.5

c  

10 and 2.5

d  

1.111 and 1.666

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