The Greater the Marginal Propensity to Import

question 7

Multiple Choice

The greater the marginal propensity to import:

• A)the smaller the spending multiplier.
• B)the greater the level of investment.
• C)the greater is the net export.
• D)the smaller is the level of consumption.

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Definitions:

Substitute Product

A product that can be used in place of another product, satisfying the same consumer needs or wants.

LRMC

Long-Run Marginal Cost, which refers to the additional cost of producing one more unit of a good or service when all inputs are variable in the long term.

Increase Traffic

Refers to the actions and strategies deployed to attract more visitors or users to a website, online platform, or physical location.

Parking Rates

The fees charged for the use of parking spaces, often varying based on location, time, and demand.