// Workers AI · dad joke modeWhat did marginal propensity to import say? "I'm inclined to bring things in.

The marginal propensity to import (MPM) is the fractional change in import expenditure that occurs with a change in GDP.^[1]

Mathematically, the marginal propensity to import (MPM) function is expressed as the ratio of the import (M) function with respect to GDP (Y).^[1]

$\mathrm {MPM} ={\frac {{\text{Δ}}M}{{\text{Δ}}Y}}$

In other words, the marginal propensity to import is measured as the ratio of the change in imports to the change in GDP, thus giving us a figure between 0 and 1.^[2]

References

1 2 Fedotovs, Aleksandrs (2008). "THE COEFFICIENT OF MULTIPLIER AND THE MARGINAL PROPENSITY TO IMPORT: THE CASE OF LATVIA" (PDF). Journal of Business Management. ISSN 1691-5348.
↑ Vasilev, Aleksandar (2025). "The Economics of an Import Tariff in the Keynesian Model: An Intermediate Macroeconomics Treatment". Theoretical and Practical Research in Economic Fields. 16 (4): 856. doi:10.14505/tpref.v16.4(36).03. hdl:10419/334395. ISSN 2068-7710.

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// Workers AI · dad joke modeWhat did marginal propensity to import say? "I'm inclined to bring things in.

See also

References

Further reading