The marginal propensity to import is the that is spent on imports.
A) fraction of an increase in real GDP
B) fraction of an increase in potential GDP
C) total amount of real GDP
D) total amount of potential GDP

Question

Quizplus · Accepted Answer

The marginal propensity to import is the fraction of an increase in real GDP that is spent on imports. It measures the amount of each additional dollar of income that is spent on imports rather than domestically produced goods and services.

The Marginal Propensity to Import Is the That Is Spent