What Is the Marginal Propensity to Import

question 4

Multiple Choice

What is the marginal propensity to import?

• A)It is the change in incomes resulting from a change in imports.
• B)It is the effect on net exports resulting from a change in imports.
• C)It is the effect on imports of a change in the exchange rate.
• D)It is the change in imports that results from a change in income.

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Definitions:

Stable

Characterized by consistency, reliability, and lack of significant change or fluctuation over time.

Fundamental Attribution Error

The tendency to overestimate the impact of personal disposition and underestimate the role of situational factors in explaining other people's behavior.

Peripheral Route Persuasion

A method of persuasion that relies on superficial factors, such as the attractiveness or credibility of the source, rather than logical argument.

Cognitive Dissonance

A state of mental discomfort arising from holding two or more conflicting beliefs, attitudes, or values, often leading to changes in beliefs or behaviors to reduce discomfort.