Solved

Scenario 10.2 A Hypothetical Open Economy Has a Marginal Propensity to Import

Question 45

Multiple Choice

Scenario 10.2
A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7. Assume that the economy is initially in equilibrium.
-Refer to Scenario 10.2. What is the marginal propensity to save of this economy?


A) 0.2
B) 0.3
C) 0.7
D) 0.9
E) 0.6

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents