The Amount by Which Imports Increase When Income Goes Up

question 52

Multiple Choice

The amount by which imports increase when income goes up by one dollar is called:

• A)the marginal propensity to consume.
• B)the spending multiplier.
• C)the money multiplier.
• D)the marginal propensity to import.

---

Definitions:

Expense

An outflow of money to another person or company to pay for an item or service, or for a cost required to operate a business.

Allowance for Doubtful Accounts

A contra-asset account that estimates the portion of accounts receivable which may not be collectible.

Adjusted

Changed or modified to reflect a more accurate valuation or account of a particular item or financial record.

Accounting Period

The span of time at the end of which a company or organization reports its financial performance and position; typically monthly, quarterly, or annually.