The Marginal Propensity to Import Is Larger in Mexico Than

question 15

Multiple Choice

The marginal propensity to import is larger in Mexico than in the United States. As a result,

• A)there is more autonomous expenditure in Mexico.
• B)there is less autonomous investment in Mexico.
• C)induced expenditure is larger in Mexico.
• D)the expenditure multiplier is larger in Mexico.
• E)the expenditure multiplier is larger in the United States.

---

Definitions:

Total Assets

The sum of all current and non-current assets owned by a company, reflecting the company’s total resources.

Trial Balance

A bookkeeping report that lists the balances in each of an organization's general ledger accounts, used to verify that total debits equal total credits in the accounting ledgers.

Ledger Accounts

Individual financial accounts within the general ledger that record all transactions affecting that account, providing detailed financial information.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.