marginal propensity to import


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marginal propensity to import (MPM)

the fraction of any change in NATIONAL INCOME that is spent on IMPORTS:

Alternatively, the change in imports can be expressed as a proportion of the change in DISPOSABLE INCOME. See PROPENSITY TO IMPORT, MULTIPLIER.

References in periodicals archive ?
Imports of intermediate goods have raised the marginal propensity to import to 0.
This phenomenon has to be observed closely because it may trigger a process of "high income-led growth" for the consumption of imported, high-value articles that may be beneficial in the short term but will result in serious limitations in the medium term due to the high marginal propensity to import induced by higher income groups.
However, unless there is a total ban on a nation's foreign imports, as y increases the marginal propensity to import will worsen the trade balance.
becomes the higher the marginal propensity to import out of additional GDP.
where a and b are constants, c is the marginal propensity to consume (MPC) and m is the marginal propensity to import (MPM).
However, it is not clear if the marginal propensity to import is higher for poor (or temporarily poor because they are unemployed) or for the rich.
However it is not clear if the marginal propensity to import is higher for poor (or temporarily poor because they are unemployed) or for the rich.

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