If the Marginal Propensity to Import (M)is Greater Than Zero,the

question 84

Multiple Choice

If the marginal propensity to import (m) is greater than zero,the income-expenditure multiplier is smaller than when m is equal to zero because

• A) as income increases,some of the additional consumption expenditure will be on imported goods.
• B) as income increases,less consumption expenditure will be on imported goods.
• C) as income decreases,there will be additional consumption expenditure on imported goods.
• D) as income increases,there will be a decrease in consumption expenditure.
• E) as income increases,there will be an increase in the amount of taxes paid.

---

Definitions:

Psychological Disorders

Mental disorders characterized by persistent disturbance or dysfunction in behavior, thoughts, or emotions, significantly impairing personal functioning.

Cognitions

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Self-Actualization

The humanistic process by which people fulfill their potential for goodness and growth.

Human Functioning

The range of human activities and capabilities, including physical, cognitive, emotional, and social aspects of life and well-being.