The fact that imports increase as real GDP increases implies that imports are part of
A)marginal expenditure.
B)autonomous expenditure.
C)consumption expenditure.
D)equilibrium expenditure.
E)induced expenditure.

Question

Quizplus · Accepted Answer

Induced expenditure refers to the expenditures which increase with the increase in income or output. As real GDP increases, imports also increase indicating that imports are induced expenditure.

The Fact That Imports Increase as Real GDP Increases Implies