The Marginal Propensity to Import

question 13

Multiple Choice

The marginal propensity to import

• A)is negative
• B)is positive
• C)is likely to be larger than the MPC
• D)depends on the value of domestic income
• E)depends on the value of exports

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Definitions:

High Quality

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Reliable

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Transitory Earnings

Earnings that are considered temporary or not expected to persist in the future, affecting long-term profitability assessment.

Future Free Cash Flows

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