Suppose a certain economy's consumption function is
where
and x are measured in billions of dollars. Find the marginal propensity to consume (the rate of change of consumption with respect to income,
) when
. R
A) $3.7 billion/billion dollars
B) $1.39 billion/billion dollars
C) $1.66 billion/billion dollars
D) $2.2 billion/billion dollars
Correct Answer:
Verified
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