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

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 = ?

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