If a Country's Ratio of Imports to National Income Rises

Multiple Choice

If a country's ratio of imports to national income rises as the country grows over time, this implies, other things equal, that the country's marginal propensity to import is __________ the country's average propensity to import and, consequently, that the country's income elasticity of demand for imports (YEM) is __________.

A) greater than; less than 1.0
B) greater than; greater than 1.0
C) less than; less than 1.0
D) less than; greater than 1.0