If MPC and MPS are equal, then the value of multiplier is :

2

If MPC and MPS are equal, then the value of the multiplier is 2.

The multiplier is a measure of the impact of a change in investment on the level of output in an economy. It is calculated as the ratio of the change in output to the change in investment.

The multiplier formula is:

K = 1 / MPS

Where:

• K is the multiplier
• MPS is the marginal propensity to save

If MPC and MPS are equal, then MPS = 1 - MPC

MPS= 1 - MPS

2 MPS=1

MPS=1/2=.05

Therefore, the value of the multiplier is:

K = 1 / 0.5 = 2

So the answer is 2.