Suppose a Certain Economy's Consumption Function Is , Where

question 133

Short Answer

Suppose a certain economy's consumption function is , where and are measured in billions of dollars.Find the marginal propensity to consume (the rate of change of consumption with respect to income, ) when .
Round the answer to two decimal places, if necessary.
$__________ billion/billion dollars

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Definitions:

Plant And Equipment

are tangible assets used in the operation of a business, including machinery, buildings, and vehicles.

Future Sales

Future sales refer to the projected revenue or the volume of goods and services a business expects to sell during a future period.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Home Prices

the amount of money required to purchase homes in a particular area, influenced by various factors including location, demand, and economic conditions.