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Suppose That a Keynesian Import Function Is Expressed as M

Question 15

Multiple Choice

Suppose that a Keynesian import function is expressed as M = 20 + 0.25Y. With this Function,


A) if income = 1,000, imports = 250.
B) if income = 1,000, the average propensity to import is 0.27.
C) the marginal propensity to import is greater at an income level of 1,000 than at an income level of 800.
D) the average propensity to import is greater at an income level of 1,000 than at an income level of 800.

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