Suppose Measures an Economy's Personal Consumption Expenditure and X

question 274

Short Answer

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. Round the answer to three decimal places, if necessary.
$__________ billion/billion dollars

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Definitions:

Public Issue

The creation and sale of securities on public markets.

Rights Offer

An invitation to existing shareholders to purchase additional shares in the company at a discounted price, usually to raise capital.

Preemptive Right

The right of existing shareholders to purchase additional shares before the company offers them to the public, to maintain their proportionate ownership.

Seasoned Equity

Refers to additional equity issued by a company that has already had securities publicly traded.