Share This Article:

Economic Definition of marginal propensity to import. Defined.

Offline Version: PDF

Term marginal propensity to import Definition: The proportion of each additional dollar of household income that is used for imports. Or alternatively, this is the change in imports due to a change in disposable income. Abbreviated MPI, the marginal propensity to import plays a minor role in modifying the aggregate expenditure line and the multiplier effect.

 

« marginal propensity to consume | marginal propensity to invest »

Permalink: http://glossary.econguru.com/economic-term/marginal+propensity+to+import

Alphabetical Reference to Over 2,000 Economic Terms