The table below shows national income and imports.The level of exports is fixed at $300.All figures in the table and in the questions are in millions of dollars. TABLE 22-1 Refer to Table 22-1.In this economy,if actual national income increases by $600,the level of imports will
A)rise by $30.
B)rise by $60.
C)rise by $100.
D)fall by $100.
E)not change.

Question

The table below shows national income and imports.The level of exports is fixed at $300.All figures in the table and in the questions are in millions of dollars.  TABLE 22-1 Refer to Table 22-1.In this economy,if actual national income increases by $600,the level of imports will
A)rise by $30. 
B)rise by $60. 
C)rise by $100. 
D)fall by $100. 
E)not change.

Quizplus · Accepted Answer

According to the table, for every $100 increase in national income, imports increase by $5. Therefore, if national income increases by $600, imports will increase by $30 (=$5 × 6). Thus, the correct option is (B).

The Table Below Shows National Income and Imports