Table 11.1 -Refer to Table 11.1. If the Marginal Propensity to Import

question 155

Multiple Choice

Table 11.1

-Refer to Table 11.1. If the marginal propensity to import increases to 0.5 (mpi = 0.5) , what is the new equilibrium level of output?

• A) 568.00
• B) 760.00
• C) 946.67
• D) 1,266.67

---

Definitions:

Capital Budgeting Procedures

A process that involves the evaluation and selection of long-term investments that are likely to yield positive returns and align with a company's strategic objectives.

Analyzing

The process of examining and evaluating data or information to gain insights or make conclusions.

Self-supporting Growth Rate

The maximum growth rate a firm can achieve without requiring additional external financing.

External Funds

Capital that comes from outside of a company, which can include debt financing from banks or equity financing from investors.