math

posted by .

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

  • math -

    This is a optimization problem !!

  • math -

    according to your definition ...

    S(x) = x - .701x - 99.34
    then dS(x)/dx = 1 - .701 = .299

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economics please help

    this is a table with some questions and i don't know how to solve it (1)real domestic output (GDP=DI) in billions $200 $250 $300 $350 $400 $450 $500 $550 (2)aggregate expenditures private closed economy billions $240 $280 $320 $360 …
  2. economics

    With proportional income tax, a. The tax multiplier equals (MPC)(1-MPC) b. The tax multiplier equals –MPC/(1-MPC) c. The spending multiplier equals (MPC)/(1-MPC) d. The spending multiplier equals 1/[1-MPC(1-t)] e. The spending multiplier …
  3. Econ

    Consider the following consumption function. C = 200 + .75(DPI), Where C is consumption, autonomous spending is 200, the MPC is .75, and DPI is disposable personal income. Using the Graph below, graph the Consumption Function. C 100 …
  4. math

    Suppose a certain economy's consumption function is as follows, where C(x) and x are measured in billions of dollars. C(x) = 0.76x1.1 + 18.19 Find the marginal propensity to consume (dC/dx) when x = 7. (Round your answer to three decimal …
  5. math

    Suppose a certain economy's consumption function is as follows, where C(x) and x are measured in billions of dollars. C(x) = 0.76x^1.1 + 18.19 Find the marginal propensity to consume (dC/dx) when x = 7. (Round your answer to three …
  6. Math

    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. …
  7. principles of macroeconomics

    The following is a list of figures for a given year in billions of dollars. Using this data, compute: (a) GDP; (b) NDP; (c) NI; (d) PI; (e) DI; (f) Net exports. Transfer payments $ 16 Government purchases 80 Personal taxes 38 Corporate …
  8. Macro

    Real Disposable (Billions) Consumption Expenditures (Billions) Savings (Billions) Income $100 $150 ____________ 200 200 ____________ 300 250 ____________ 400 300 ____________ a. Graph the consumption function with consumption spending …
  9. Finance

    Assume personal income was $28 million last year. Personal outlays were $20 million and personal current taxes were $5 million. a. What was the amount of disposable personal income last year?
  10. Math (Confused)

    A certain economy's consumption function is given by the equation C(x)=0.75x+5 where C(x) is the personal consumption expenditure in billions of dollars and x is the disposable personal income in billions of dollars. Find C(0), C(50), …

More Similar Questions