### *If MPC is 0.2, Find Multiplier (k)? Complete Explanation for APPSC, UPSC, Class 12 Economics* *Introduction* In macroeconomics, one of the most asked questions in APPSC Group 2, UPSC, and Class 12 CBSE Economics is: *If Marginal Propensity to Consume (MPC) is 0.2, what is the value of Multiplier (k)?* Many students get confused between MPC, MPS, and Multiplier. In this post, Unique Study Centre Kadapa will explain step-by-step formula, calculation, graph, and importance. *What is MPC? (Marginal Propensity to Consume)* MPC is the ratio of change in consumption to change in income. *Formula: MPC = ΔC / ΔY* It means, if income increases by Rs 100, how much extra is spent on consumption. MPC value always lies between 0 and 1. If MPC = 0.2, it means: Out of every additional Rs 1 of income, the consumer spends only 20 paise (0.20 Rs) and saves 80 paise. This is typical of an economy where people save more, like during recession or high-interest rate period. *What is Multiplier (k)?* The...
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