If, when a country grows, its home production of its import good increases by 15 percent And its home consumption of the import good also increases by 15 percent, then, with the Economic growth, the country's absolute quantity of imports will __________.

Question

Quizplus · Accepted Answer

The home production and consumption of the import good both increasing at the same rate indicates a growing demand for the good. As the domestic production is not sufficient to meet the increasing demand, the country will have to import more of the good, resulting in an increase in the absolute quantity of imports.

If, When a Country Grows, Its Home Production of Its