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.
On what does the level of consumption in an economy depend most?
A)The needs of households.
B)The income level of households.
C)The level of savings.
D)The wants of households.
What is true of the size of the MPC?
A)It is less than zero.
B)It is greater than one.
C)It is greater than zero,but less than one.
D)It is equal to one.
Refer to the graph above to answer this question.What is the value of the MPC?