The Marginal Propensity to Import Is

question 73

Multiple Choice

The marginal propensity to import is:

• A)the change in imports divided by a change by exports.
• B)the change in imports divided by a change in consumption.
• C)the change in imports divided by a change in GDP.
• D)the change in imports multiplied by a change in GDP.

---

Definitions:

Net Present Value

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment, calculated by summing the present values of incoming and outgoing cash flows over a period of time.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, calculated by discounting all expected future cash flows to the present value.

Market Value

The present cost set for assets or services to be traded in the marketplace.

Investment Criteria

The guidelines or metrics used by investors or managers to assess the attractiveness of an investment or project.