If marginal propensity to consume is 0.6 and marginal propensity to import is 0.04, what is the value of the foreign trade multiplier?
CA Foundation · Business Economics · PYQS · January 2026
If marginal propensity to consume is 0.6 and marginal propensity to import is 0.04, what is the value of the foreign trade multiplier?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. 2.27
Topics: Determination of National Income
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