The marginal propensity to import (MPM) is the fractional change in import expenditure that occurs with a change in disposable income (income after taxes and transfers). For example, if a household earns one extra dollar of disposable income, and the marginal propensity to import is 0.2, then the household will spend 20 cents of that dollar on imported goods and services. Mathematically, the marginal propensity to import (MPM) function is expressed as the derivative of the import (M) function with respect to disposable income (Y). In other words, the marginal propensity to import is measured as the ratio of the change in imports to the change in income, thus giving us a figure between 0 and 1. Imports are also considered to be automatic stabilisers that work to lessen fluctuations in real GDP. The UK government assumes that UK citizens have a high marginal propensity to import and thus will use a decrease in disposable income as a tool to control the current account on the balance of payments. (Wikipedia).
Episode 39: Economic Sanctions
Not all trade restrictions are alike - in Episode 35, we looked at restrictions intended to protect the economic interests of domestic producers. In this video, we look at sanctions, trade restrictions that act as a form of punishment on foreign countries with the goal of changing the targ
From playlist Microeconomics modules
The route to greater resilience is to explore how well we would cope if so much of what we think we need were to be taken away from us. We would, almost certainly, manage far better than we think in our timid moments. If you like our films, take a look at our shop (we ship worldwide): http
From playlist WORK + CAPITALISM
Unit 5 - practice problem 1 solution
From playlist Courses and Series
From playlist Courses and Series
Fiscal policy to address output gaps | AP Macroeconomics | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/national-income-and-price-determinations/fiscal-policy-ap/v/fiscal-policy-to-address-output-gaps-ap-macroeconomics-khan-academ
From playlist AP Macroeconomics
Mod-01 Lec-30 Keynesian economics
History of Economic Theory by Dr. Shivakumar, Department of Humanities and Social Sciences IIT Madras, For more details on NPTEL visit http://nptel.iitm.ac.in
From playlist IIT Madras: History of Economic Theory | CosmoLearning.org Economics
Tax multiplier, MPC, and MPS | AP Macroeconomics | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/national-income-and-price-determinations/multipliers-ap/v/tax-multiplier-mpc-and-mps-ap-macroeconomics-khan-academy The spen
From playlist AP Macroeconomics
Unit 7 - no price discrimination part 2
From playlist Courses and Series
The Multiplier Effect- Macro Topic 3.2
In this video I explain the two multipliers that you will see in an introductory macroeconomics course: the simple spending multiplier and the money multiplier. I also cover the tax multiplier, which is always negative. Keep in mind that the spending multiplier increases when people save l
From playlist Macro Unit 3: AD-AS, National Income, and Price Determination
Generalized linear consumption function | Macroeconomics | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/macroeconomics-the-consumption-function/v/generalized-linear-consumption-function Generalizing a l
From playlist Income and expenditure: Keynesian cross and IS-LM model | Macroeconomics | Khan Academy
From playlist Courses and Series
Keynesian cross and the multiplier | Macroeconomics | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/macroeconomics-the-keynesian-cross/v/keynesian-cross-and-the-multiplier More on shifting aggregate
From playlist Income and expenditure: Keynesian cross and IS-LM model | Macroeconomics | Khan Academy
Unit 5 - pareto optimal allocations part 5
From playlist Courses and Series
Unit 5 - pareto optimal allocations part 1
From playlist Courses and Series
Episode 36: Types of Trade Restrictions
In this video, I go over the types of tools that might be used to restrict trade, and the effects of trade restrictions. "Episode 36: Types of Trade Restrictions" by Dr. Mary J. McGlasson is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
From playlist Microeconomics modules
Lecture 21: PF (Part 4) / Labor (Part 1)
MIT 14.771 Development Economics, Fall 2021 Instructor: Ben Olken View the complete course: https://ocw.mit.edu/courses/14-771-development-economics-fall-2021 YouTube Playlist: https://www.youtube.com/playlist?list=PLUl4u3cNGP61kvh3caDts2R6LmkYbmzaG Concludes discussion of tax, with th
From playlist MIT 14.771 Development Economics, Fall 2021
Consumption function with income dependent taxes | Macroeconomics | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/macroeconomics-the-consumption-function/v/consumption-function-with-income-dependent-taxes Thinkin
From playlist Income and expenditure: Keynesian cross and IS-LM model | Macroeconomics | Khan Academy
Consumption function basics | Macroeconomics | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/macroeconomics-the-consumption-function/v/consumption-function-basics The basic idea of a consumpt
From playlist Income and expenditure: Keynesian cross and IS-LM model | Macroeconomics | Khan Academy