Question

which of the following factor is not used in multipler formula of open economy
a) marginal propensity to save b) marginal propensity to import
c) marginal propensity to tax
d) marginal propensity to export​

Answer 1

Answer:

B IS THE RIGHT ANSWER

Explanation:

Answer 2

Concept:

Saving function shows the direct relationship between the saving and disposable income. It is a positive slope and upward sloping curve.

Given:

which of the following factor is not used in multipler formula of open economy is the marginal propensity to save, marginal propensity to import, marginal propensity to tax and marginal propensity to export​.

To find:

Which of the following factor is not used in multipler formula of open economy is to find out.

Solution:

Marginal propensity to save is the ratio of change in saving and change in disposable income. Marginal propensity to tax is the ratio of change in tax to the change in income. Marginal propensity to export is the ratio of change in export to the change in income.

The correct option is b) marginal propensity to import.