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    Macroeconomics Australia Study Set 1
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    Exam 12: Aggregate Expenditure Multiplier
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    If the Marginal Propensity to Import Is ________, Then a $2
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If the Marginal Propensity to Import Is ________, Then a $2

Question 75

Question 75

Multiple Choice

If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.2 trillion. If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.6 trillion.


A) 1.0; 3.0
B) 0.6; 2.0
C) 0.2; 0.6
D) 0.1; 0.3
E) 0.3; 0.1

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