Suppose a Certain Economy's Consumption Function Is , Where

question 177

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:

Nominal

pertaining to names or terms, or representing values by names in certain contexts, such as nominal data in statistics which categorizes without a natural order.

Augmented

Enhanced or improved by adding features, components, or elements not originally present.

Complement

Something that completes or goes well with something else, often enhancing its qualities or effectiveness.

Open Systems

Systems that interact with their environment and can exchange information, material, or energy with an external source.