Marginal Propensity to Import

Marginal Propensity to Import Concept

In macroeconomics, the expression Marginal Propensity to Import designates the variation in monetary terms, the imports’ value in consequence of the increase of a monetary unit in the value of the product (or GNP). Marginal Propensity to Import concept is directly related with the Marginal Propensity for Consumption concept: whenever occurs a product’s increase (and therefore of the income), it’s natural that the consumption increases according to a certain rate, being that part of that consumption will be directed to imported goods.