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If the Marginal Propensity to Consume Foreign Imports (MPCF) Is

Question 13

Multiple Choice

If the marginal propensity to consume foreign imports (MPCF) is equal to 0.15, then a(n) :


A) increase in domestic consumption will generate a 15% rise in imports.
B) decrease in domestic consumption will generate a 15% rise in imports.
C) increase in domestic income will generate a 15% rise in imports.
D) decrease in domestic income will generate a 15% rise in imports.

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