Scenario 10.2 A Hypothetical Open Economy Has a Marginal Propensity to Import

question 90

Multiple Choice

Scenario 10.2
A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7. Assume that the economy is initially in equilibrium.
-Refer to Scenario 10.2. What is the marginal propensity to save of this economy?

• A) 0.2
• B) 0.3
• C) 0.7
• D) 0.9
• E) 0.6