For the given value solve for the two missing values a MPS
For the given value, solve for the two missing values
a. MPS = 1 MPC = ? M = ?
b. M = 50 MPC = ? MPS = ?
c. MPC = 0.90 MPS = ? M = ?
d. MPS = 0.20 MPC = ? M = ?
e. M = 1000 MPC = ? MPS = ?
Solution
Basic rules are
MPC + MPS = 1 and multiplier M = 1/MPS
a) MPC = 1 - MPS = 1 - 1 = 0. Multiplier M = 1/MPS = 1
b) M = 50 so MPS = 1/50 = 0.02 and so MPC = 1 - 0.02 = 0.98
c) MPC = 0.90 so MPS = 1 - 0.90 = 0.10 and M = 1/0.10 = 10
d) MPC = 0.20 so MPS = 0.80 and M = 1/0.80 = 1.25
e) M = 1000 so MPS = 1/1000 = 0.001 and MPC = 0.999
