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:

Service Department Allocations

The process of distributing indirect costs from service departments to producing departments based on their usage of services.

Service Department Allocations

The process of distributing the costs of service departments to producing or operating departments based on their usage of services.

Service Department Charge Rate

The rate at which internal service departments charge other parts of the same organization for the services rendered.

Accounting Department

The division within a company responsible for managing financial records, ensuring compliance with accounting standards, and producing financial statements.