The amount by which imports increase when income goes up by one dollar is called:
A)the marginal propensity to consume.
B)the spending multiplier.
C)the money multiplier.
D)the marginal propensity to import.

Question

Quizplus · Accepted Answer

The amount by which imports increase when income goes up by one dollar is known as the marginal propensity to import (MPI). The other options are not related to imports, but to consumption and spending in general.

The Amount by Which Imports Increase When Income Goes Up