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Investments glossary

Marginal Propensity To Import (MPM)

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Quotes of the day:

A bad man, though raised to honour, always returns to his natural course, as a dog?s tail, though warmed by the fire and rubbed with oil, retains its form

— The Hitopadesa

The marginal propensity to import (MPM) is the amount imports increase or decrease with each unit rise or decline in disposable income. The idea is that rising income for businesses and households spurs greater demand for goods from abroad and vice versa.



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