The Marginal Propensity to Import Is Equal to

question 163

Multiple Choice

The marginal propensity to import is equal to

• A)disposable income minus consumption expenditure minus saving divided by real GDP.
• B)the change in imports divided by the change in real GDP that brought it about, other things remaining the same.
• C)the change in net imports divided by the change in disposable income, other things remaining the same.
• D)imports minus exports.
• E)1 - MPS - MPC.

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Definitions:

Transactions

Transactions refer to the exchange of goods, services, or funds between two or more parties, forming the basis of business activities and financial operations.

Investee

A company or entity in which an investor holds a significant interest, but not majority control.

Gross Profit

The financial metric obtained by deducting the cost of goods sold from revenue, indicating the efficiency of a company in managing its labor and supplies in the production process.

Intra-entity Sales

Transactions that occur between divisions or subsidiaries within the same parent company, affecting consolidated financial statements.