The Marginal Propensity to Import Is Defined as

question 23

Multiple Choice

The marginal propensity to import is defined as

• A)the fraction of each additional dollar of income that is spent on imported products
• B)the fraction of each additional dollar of income that is spent on exports minus imports
• C)the amount spent on imports at each level of income
• D)the change in income divided by the change in imports
• E)the level of imports divided by the level of income

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Definitions:

Population

The total number of people inhabiting a specific area or country, often analyzed for demographic trends and policy making.

Total Income

The sum of all earnings received by an individual or entity, including wages, salaries, benefits, and income from investments.

Public Assistance

Government programs designed to provide financial aid or services to individuals or families in need, often based on income criteria.

Food Stamps

Government-issued vouchers that can be used to purchase groceries at retail stores, intended to help low-income families afford food.