The marginal propensity to import is defined as
A) the fraction of each additional dollar of income that is spent on imported products
B) the fraction of each additional dollar of income that is spent on exports minus imports
C) the amount spent on imports at each level of income
D) the change in income divided by the change in imports
E) the level of imports divided by the level of income
Correct Answer:
Verified
Q1: Since imports are positively related to domestic
Q2: Adding net exports to aggregate expenditure always
A)increases
Q4: If net exports increase by $400 billion
Q5: If the MPC equals 0.7 and the
Q6: The formula for the spending multiplier in
Q7: What is the impact of net exports
Q9: If net exports increase by $350 billion
Q10: Net exports are a leakage from the
Q93: Exports are an injection into the circular
Q96: Imports are a leakage from the circular
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