The marginal propensity to import is equal to
A)the change in imports divided by the change in real GDP that brought it about, other things remaining the same.
B)1 - MPS - MPC.
C)imports minus exports.
D)disposable income minus consumption expenditure minus saving divided by real GDP.
E)the change in net imports divided by the change in disposable income, other things remaining the same.

Question

Quizplus · Accepted Answer

The marginal propensity to import is the change in imports due to a change in real GDP. It is calculated by dividing the change in imports by the change in real GDP that brought it about, while holding other factors constant.

The Marginal Propensity to Import Is Equal to