Will marginal propensity to spend (d) will be low if,

propensity to import (m) is low, marginal propensity to consume (b) is low and tax rate is (t) is low?

To determine whether the marginal propensity to spend (d) will be low in the given scenario, we need to consider the factors that influence it: propensity to import (m), marginal propensity to consume (b), and the tax rate (t).

The marginal propensity to spend (d) represents the change in total spending resulting from a change in income, which includes both consumption and imports. It is calculated by subtracting the marginal propensity to save (s) from 1. Therefore, the equation can be expressed as follows:

d = 1 - s

Now let's analyze the given factors:

1. Propensity to import (m): If the propensity to import (m) is low, it means that a smaller portion of income is used for imports. This implies that a larger portion of income is available for domestic consumption, which can increase the marginal propensity to consume (b) and overall spending. As a result, a low propensity to import (m) would suggest a higher marginal propensity to spend (d).

2. Marginal propensity to consume (b): If the marginal propensity to consume (b) is low, it means that a smaller proportion of additional income is spent on consumption. This can lead to a decrease in the marginal propensity to spend (d) since a smaller portion of income is being spent.

3. Tax rate (t): If the tax rate (t) is low, it means that individuals have higher disposable income (after-tax income). With more disposable income available, people tend to spend a larger proportion of their income, which can increase both the marginal propensity to consume (b) and the marginal propensity to spend (d).

Considering these factors, if the propensity to import (m) is low, the marginal propensity to consume (b) is low, and the tax rate (t) is low, the overall impact on the marginal propensity to spend (d) would depend on how these factors interact and their relative magnitudes.

In conclusion, without specific quantitative values for each factor, it is not possible to definitively determine whether the marginal propensity to spend (d) will be low in this scenario. However, a low propensity to import (m) and low tax rate (t) generally have the potential to increase the marginal propensity to spend (d), while a low marginal propensity to consume (b) can have the opposite effect.