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:

Department's Output

The total amount of goods or services produced by a specific department within a given period.

Direct Materials

Components and primary raw inputs used in the creation of a product, identifiable as integral parts of the finished product.

Direct Labor

The wages or expenses incurred for labor that is directly involved in the manufacturing of a product.

Process

A series of actions or steps taken in order to achieve a particular end in business or manufacturing.