If MPS=0.4, find MPC

If MPC=0.25, find MPS.

If saviing funciton of an economy is given as, S-=40+0.4(Y), then MPC is

Calculate Multiplier when MPC is 4/5 and 1/2 From the calculation, establish the relation between size of Multiplier and size of MPC. When MPC (4)/(5) K=(1)/(1=0.8)=(1)/(0.2)=5 When MPC= (1)/(2) K=(1)/(1-0.5)=2 Observing the same, we may conclude that there exist positive or direct relation between MPC and investment multiplier. Investment multiplier coefficient measures the change in final income with repsect to given change in the change in the initial investment in the economy. It carries direct relation with rate of growth in an economy, i.e. higher the MPC, more change of growth exists in an ecnomy. But, it a two sided sword hence if investment falls in economy the income may also fall.

AS a result of increase in investment by Rs. 20 crore , national income increase by Rs. 100 crore , find out MPC.

If the value of MPS is 0.3, what is value of MPC?