Suppose measures an economy's personal consumption expenditure and x the personal income, both in billions of dollars. Then, measures the economy's savings corresponding to an income of x billion dollars. Then .
The quantity dS/dx is called the marginal propensity to save.

For the consumption function , find the marginal propensity to save.

A) $0.43 billion/billion dollars
B) $0.286 billion/billion dollars
C) $0.68 billion/billion dollars
D) $0.337 billion/billion dollars

Question

Suppose  measures an economy's personal consumption expenditure and x the personal income, both in billions of dollars. Then,  measures the economy's savings corresponding to an income of x billion dollars. Then  . ​
The quantity dS/dx is called the marginal propensity to save.
​
For the consumption function  , find the marginal propensity to save.
​
A) $0.43 billion/billion dollars 
B) $0.286 billion/billion dollars 
C) $0.68 billion/billion dollars 
D) $0.337 billion/billion dollars

Quizplus · Accepted Answer

The Answer of Suppose  measures an economy's personal consumption expenditure and x the personal income, both in billions of dollars. Then,  measures the economy's savings corresponding to an income of x billion dollars. Then  . ​
The quantity dS/dx is called the marginal propensity to save.
​
For the consumption function  , find the marginal propensity to save.
​
A) $0.43 billion/billion dollars 
B) $0.286 billion/billion dollars 
C) $0.68 billion/billion dollars 
D) $0.337 billion/billion dollars

Suppose Measures an Economy's Personal Consumption Expenditure and X