Enter the total change in imports ($) and the total change in income or production ($) into the Marginal Propensity to Import Calculator. The calculator will evaluate the Marginal Propensity to Import.
Marginal Propensity to Import Formula
The following two example problems outline the steps and information needed to calculate the Marginal Propensity to Import.
MPM = dI / dP
Variables:
- MPM is the Marginal Propensity to Import ($/$)
- dI is the total change in imports ($)
- dP is the total change in income or production ($)
To calculate the marginal propensity to import, divide the total change in imports by the total change in income.
How to Calculate Marginal Propensity to Import?
The following steps outline how to calculate the Marginal Propensity to Import.
- First, determine the total change in imports ($).
- Next, determine the total change in income or production ($).
- Next, gather the formula from above = MPM = dI / dP.
- Finally, calculate the Marginal Propensity to Import.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
total change in imports ($) = 300,000
total change in income or production ($) = 400,000
MPM = dI / dP = ?
