What is the marginal propensity to import in the us

Reference no: EM132150114

Question: 1. In January 2009, Congress passed a major stimulus bill. The bill increased federal spending over several years; in 2010, stimulus spending was $385 trillion, or about 2 percent of GDP. According to the Office of Management and the Budget (OMB), the stimulus raised 2010 GDP by about 3 percent. Given these numbers, what do OMB economists believe is the value of the multiplier?

2. Suppose the marginal propensity to import is 0.25. If GDP falls by 20, what is the change in imports?

3. Between 2010 and 2015, US GDP increased by about $3 trillion, while imports increased by about $0.6 trillion. Based on these numbers, what is the marginal propensity to import in the US?

Reference no: EM132150114

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