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Marginal Propensity to Import Calculator

LAST UPDATE: August 29th, 2018

Calculator

What is marginal propensity to import (MPM)?

MPM is the amount that imports will increase (or decrease) for every increase (or decrease) in disposable income.

When income increases, those who benefit from it have a choice to either save or spend. If they spend 25% of their increase in income on imported items, their MPM would be 0.25.

Formula

Marginal Propensity to Import = Change in Imports / Change in Income

Example

Imports increase by $300 in the same period where income increases by $1,500.

MPM = $300 / $1,500 = 0.2

Therefore, Marginal Propensity to Import is 0.2.

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