As globalization has increased, the trend in the U.S. marginal propensity to import has been for it to
A) remain steady.
B) decrease to more than 0.8.
C) increase.
D) decrease to less than 0.8.

Question

Quizplus · Accepted Answer

As globalization increases, the marginal propensity to import in the U.S. has also increased. This is because with globalization, it becomes easier and more cost-effective for U.S. consumers and firms to purchase goods and services from foreign countries, leading to a higher propensity to import.

As Globalization Has Increased, the Trend in the U