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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With M
  5. Marginal Propensity to Import

Marginal Propensity to Import

Definition of 'Marginal Propensity to Import'

The fraction of each additional pound of national income that domestic residents wish to spend on extra imports.

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Related Terms

Marginal Propensity to SaveProtectionismDiminishing Marginal Rate of SubstitutionDistortionMarginal FirmMarginal Rate of SubstitutionMarginal UtilityMCCMEIDiminishing Marginal UtilityMarginal CostMarginal Cost of CapitalMarginal Efficiency of InvestmentMarginal Product of LabourMarginal RevenueMarginal Value Product of CapitalPeak Load PricingThe Law of Diminishing ReturnsTwo-Part Tariff

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