The Marginal Propensity to Import Is Equal to

question 163

Multiple Choice

The marginal propensity to import is equal to

• A)the change in imports divided by the change in real GDP that brought it about, other things remaining the same.
• B)1 - MPS - MPC.
• C)imports minus exports.
• D)disposable income minus consumption expenditure minus saving divided by real GDP.
• E)the change in net imports divided by the change in disposable income, other things remaining the same.

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Definitions:

Accounting Cycle

The four-step procedure of an accounting system: examining source documents, recording transactions in an accounting journal, posting recorded transactions, and preparing financial statements.