The fraction of additional income spent on imports is called the marginal propensity to import.

Name: The fraction of additional income spent on imports is called the marginal propensity to import.
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This statement is true. The marginal propensity to import (MPI) is the fraction of additional income that is spent on imports, meaning it measures the increase in imports that result from an increase in income.

The Fraction of Additional Income Spent on Imports Is Called