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
.
A) 
B) 
C) 
D) 
Correct Answer:
Verified
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