Suppose Measures an Economy's Personal Consumption Expenditure and X

question 252

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 , 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

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