Multiple Choice
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) -$0.213 billion/billion dollars
B) $0.874 billion/billion dollars
C) -$0.85 billion/billion dollars
D) $0.119 billion/billion dollars
Correct Answer:

Verified
Correct Answer:
Verified
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