Matching Multiplier (K) with MPC and MPS Values

This question requires matching components of the multiplier effect from List-I with their corresponding multiplier values in List-II. We use the fundamental relationships in the multiplier theory:

• MPC + MPS = 1
• Multiplier, $K = \frac{1}{1 - MPC}$
• Multiplier, $K = \frac{1}{MPS}$

Calculations for List-I Components:

A. MPC = 0.2

• Calculate MPS: $MPS = 1 - MPC = 1 - 0.2 = 0.8$
• Calculate Multiplier K: $K = \frac{1}{MPS} = \frac{1}{0.8} = \frac{10}{8} = 1.25$
• Match: A corresponds to $K = 1.25$, which is (iv).

B. MPS = 0.5

• Calculate Multiplier K: $K = \frac{1}{MPS} = \frac{1}{0.5} = 2$
• Match: B corresponds to $K = 2$, which is (i).

C. MPS = 0.75

• Calculate Multiplier K: $K = \frac{1}{MPS} = \frac{1}{0.75} = \frac{1}{3/4} = \frac{4}{3} \approx 1.33$
• Match: C corresponds to $K \approx 1.33$, which is (iii).

D. MPC = 0.4

• Calculate MPS: $MPS = 1 - MPC = 1 - 0.4 = 0.6$
• Calculate Multiplier K: $K = \frac{1}{MPS} = \frac{1}{0.6} = \frac{1}{3/5} = \frac{5}{3} \approx 1.67$
• Match: D corresponds to $K \approx 1.67$. The closest option is $K = 1.66$, which is (ii).

Correct Matching:

Based on the calculations:

• A corresponds to (iv)
• B corresponds to (i)
• C corresponds to (iii)
• D corresponds to (ii)

The correct code is A-(iv), B-(i), C-(iii), D-(ii).