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 .R
A)$4.98 billion/billion dollars
B)$1.21 billion/billion dollars
C)$2.51 billion/billion dollars
D)$3.54 billion/billion dollars

Question

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  .R
A)$4.98 billion/billion dollars 
B)$1.21 billion/billion dollars 
C)$2.51 billion/billion dollars 
D)$3.54 billion/billion dollars

Quizplus · Accepted Answer

The Answer of 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  .R
A)$4.98 billion/billion dollars 
B)$1.21 billion/billion dollars 
C)$2.51 billion/billion dollars 
D)$3.54 billion/billion dollars

Suppose a Certain Economy's Consumption Function Is Where