Suppose Measures an Economy's Personal Consumption Expenditure and X

question 181

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.

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Definitions:

Lowest Cost Method

A principle of optimizing operations or production by minimizing the costs involved in the process.

Objectives

Objectives refer to the specific, measurable goals individuals or organizations aim to achieve.

Benefit

An advantage, gain, or positive outcome derived from a specific action, decision, or product.

Satisfaction

A feeling of fulfillment or contentment that comes from achieving one's goals or meeting one's needs and desires.