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January 24, 2020 

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ADB: An abbreviation that stands for either the African Development Bank the Asian Development Bank. The African Development Bank is a regional multilateral development institution engaged in promoting the economic development and social progress of its member countries in Africa. The Bank, established in 1964, started functioning in 1966 with its Headquarters in Abidjan, Cote d' lvoire. The Bank borrows funds from the international money and capital markets. Its shareholders are the 53 countries in Africa as well as 24 countries in the Americas, Europe, and Asia. The Asian Development Bank is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific that engages in mostly public sector lending for development purposes in its developing member countries. They pursue this goal by helping to improve the quality of people's lives providing loans and technical assistance for a broad range of development activities. ADB raises fund through bond issues on the world's capital markets but they also rely on members' contributions. The ADB was established in 1966 and has its headquarters in Manila, Philippines. As of September of 2003, the ADB had 58 member countries.

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IMPORTS LINE:

A graphical depiction of the relation between imports bought from the foreign sector and the domestic economy's aggregate level of income or production. This relation is most important for deriving the net exports line, which plays a minor, but growing role in the study of Keynesian economics. An imports line is characterized by vertical intercept, which indicates autonomous imports, and slope, which is the marginal propensity to import and indicates induced imports. The aggregate expenditures line used in Keynesian economics is derived by adding or stacking the net exports line, derived as the difference between the exports line and imports line, onto the consumption line, after adding investment expenditures and government purchases.
The imports line shows the relation between imports purchased from the foreign sector and aggregate income or production. The income and production measures most commonly used are national income and gross domestic product. The purpose of the imports line is to graphically illustrate the imports-income relation for the foreign sector, which is then used to derive the net exports line by vertically subtracting it from the exports line, after which it is then integrated into the aggregate expenditures line used in Keynesian economics.

Net exports are the difference between exports and imports, or exports minus imports. Exports are purchases of domestic production by the foreign sector and imports are purchases of foreign production by the domestic economy. While exports are totally autonomous, imports are induced by the level of domestic income and production. Reflecting this, the imports line is positively-sloped, with the slope equal to the marginal propensity to import (MPM). The vertical intercept, or Y-intercept, of the imports line is then autonomous imports.

Imports Line
Imports Line
The positively-sloped red line, labeled M in the exhibit to the right, indicates a typical imports line. Line any straight line, this imports line is characterized by two key parameters, intercept and slope. The intercept indicates autonomous imports and the slope indicates induced imports.

Identifying numbers for these two parameters for this particular line indicates that the intercept is $0, meaning autonomous imports is $0, and the slope is 0.075, meaning a $1 increase in domestic income or production induces a $0.075 increase in imports. In this particular case, the imports line has a zero intercept, indicating no autonomous imports, but that need not be the case. Most notable is that the slope of the imports line is the marginal propensity to import (MPM).

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IMPORTS LINE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2020. [Accessed: January 24, 2020].


Check Out These Related Terms...

     | induced net exports | autonomous net exports | induced imports | autonomous exports | marginal propensity to import | slope, net exports line | intercept, net exports line | consumption line | saving line | investment line | government purchases line |


Or For A Little Background...

     | net exports | net exports of goods and services | imports | exports | Keynesian economics | macroeconomics | foreign sector | national income | gross domestic product |


And For Further Study...

     | induced expenditures | autonomous expenditures | aggregate expenditures | aggregate expenditures line | derivation, consumption line | net exports determinants | Keynesian model | Keynesian equilibrium | injections-leakages model | aggregate demand | paradox of thrift | fiscal policy | multiplier | government functions |


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