The Marginal Propensity to Import (MPM) tells us:
(a) That society needs to import.
(b) The proportion of each extra Euro of income that is spent on imports.
(c) That the total volume of imports is constant over time.
(d) The proportion of any extra income that will be spent on exports.
Answer: (b) The proportion of each extra Euro of income that is spent on imports.
Economics
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An unemployment insurance program has which of the following effects?
A) It increases the amount of time spent searching for a job. B) It decreases the amount of personal income of the unemployed. C) It contributes to the severity of a recession or economic downturn. D) It lowers the overall unemployment rate.
Economics
The sun is an example of:
a. a natural resource. b. capital. c. labor. d. none of these.
Economics