Question: Marginal Propensity to Save Suppose C ( x ) measures an economy's personal consumption expenditure and x the personal income, both in billions of dollars.
Marginal Propensity to Save
Suppose Cx measures an economy's personal consumption expenditure and x the personal income, both in billions of dollars. Then the following function measures the economy's savings corresponding to an income of x billion dollars.
Sx x Cxincome minus consumption
The quantity
dSdx
below is called the marginal propensity to save.
dSdx
dCdx
For the following consumption function, find the marginal propensity to save when x Round your answer to three decimal places.
Cxx
$ billion per billion dollars
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