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:

Subcultural Influences

The impact of the customs, beliefs, and practices of a subculture on its members or on the wider society.

Multicultural

Relating to, or representing several different cultures or cultural elements.

Utilitarianism

A moral philosophy that advocates for actions that maximize happiness and well-being for the majority.

Rawls

A philosopher best known for his theory of justice as fairness, which emphasizes principles of equality and liberty in organizing society.