Marginal propensity to import

The marginal propensity to import (MPM) is the fractional change in import expenditure that occurs with a change in GDP.[1]

Mathematically, the marginal propensity to import (MPM) function is expressed as the ratio of the import (M) function with respect to GDP (Y).[1]

In other words, the marginal propensity to import is measured as the ratio of the change in imports to the change in GDP, thus giving us a figure between 0 and 1.[2]

See also

References

  1. ^ a b Fedotovs, Aleksandrs (2008). "THE COEFFICIENT OF MULTIPLIER AND THE MARGINAL PROPENSITY TO IMPORT: THE CASE OF LATVIA" (PDF). ournal of Business Management. ISSN 1691-5348.
  2. ^ Vasilev, Aleksandar (2025). "The Economics of an Import Tariff in the Keynesian Model: An Intermediate Macroeconomics Treatment". Theoretical and Practical Research in Economic Fields: 856. doi:10.14505/tpref.v16.4(36).03. hdl:10419/334395. ISSN 2068-7710.

Further reading

  • Shinohara, Miyohei (1957). "The Multiplier and the Marginal Propensity to Import". American Economic Review. 47 (5): 608–624. JSTOR 1811740.


This article is issued from Wikipedia. The text is available under Creative Commons Attribution-Share Alike 4.0 unless otherwise noted. Additional terms may apply for the media files.