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 , where and x are measured in billions of dollars, find the marginal propensity to save when .

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  , where  and x are measured in billions of dollars, find the marginal propensity to save when  .
​

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  , where  and x are measured in billions of dollars, find the marginal propensity to save when  .
​

Suppose Measures an Economy's Personal Consumption Expenditure and X