Ireland's economic profile is highly sensitive to changes in international trade due to its high level of openness. Small, globalised economies typically exhibit a high marginal propensity to import. Between 2021 and 2022, the average annual disposable income for Irish households rose from €36,000 to €40,000, while average household annual spending on imported goods and services rose from €7,200 to €8,200.
Using the information from the stimulus material, calculate Ireland's marginal propensity to import between 2021 and 2022.
14 exam-style questions on OCR A Level Economics Circular flow of income. Each one has a worked solution and a mark scheme showing where the marks go.