Question

If the marginal propensity to consume is greater than marginal propensity to import then​

Answer 1

Answer:

If the MPM is greater, then the multiplier process is less. An increase in the marginal propensity to import increases the value of the denominator on the right-hand side of the equation, which then decreases the overall value of the fraction and thus the size of the multiplier.

Explanation:

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