average propensity to import
Average Propensity to Import
The amount of money a person spends on imports as a percentage of total income. For example, if one makes $50,000 and spends $10,000 on imported goods, the average propensity to import is 20%. It should not be confused with the marginal propensity to import.
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average propensity to import (APM)the fraction of a given level of NATIONAL INCOME that is spent on IMPORTS:
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005