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Marginal Propensity to Import (m)
The marginal propensity to import (m) represents the proportion of each additional unit of national income that is spent on imported goods and services. This value is a fraction, typically greater than 0 but less than 1, indicating that only a part of new income is allocated to imports.
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Marginal Propensity to Import (m)
Net Exports Function
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Calculating the Marginal Propensity to Import
If a country's marginal propensity to import is 0.2, this means that 20% of the country's total national income is spent on imported goods and services.