Posted by **Smantha** on Friday, October 19, 2012 at 5:42pm.

Suppose C(x) 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.

S(x) = x - C(x) (Income minus consumption)

The quantity dS/dx below is called the marginal propensity to save.

For the following consumption function, find the marginal propensity to save.

C(x) = 0.701x + 99.34

$ billion per billion dollars

## Answer This Question

## Related Questions

- Math - Suppose C(x) measures an economy's personal consumption expenditure and ...
- Math (Confused) - A certain economy's consumption function is given by the ...
- principles of macroeconomics - The following is a list of figures for a given ...
- economics please help - this is a table with some questions and i don't know how...
- economics - With proportional income tax, a. The tax multiplier equals (MPC)(1-...
- Econ - Consider the following consumption function. C = 200 + .75(DPI), Where C ...
- math - Suppose a certain economy's consumption function is as follows, where C(x...
- math - Suppose a certain economy's consumption function is as follows, where C(x...
- Macro - Real Disposable (Billions) Consumption Expenditures (Billions) Savings...
- Finance - Assume personal income was $28 million last year. Personal outlays ...

More Related Questions