Consider an Open Economy That Has a Marginal Propensity to Import

question 64

Multiple Choice

Consider an open economy that has a marginal propensity to import equal to 0.30.If national income rises by $2500,imports will rise by

• A)$30.
• B)$300.
• C)$750.
• D)$7500.
• E)$8333.

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Definitions:

Dilation of the Pupil

The process where the pupil enlarges to allow more light to enter the eye, often in response to low light conditions or certain emotional states.

Chemical Changes

Reactions that result in the transformation of substances into one or more different substances, involving the making and breaking of chemical bonds.

Top-down Processing

A cognitive process that uses context and pre-existing knowledge to understand information.

Constriction

The act or process of drawing together or becoming narrower; it can apply to physical objects, bodily processes, or even psychological states.