Suppose a certain economy's consumption function is where and x 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) $3.7 billion/billion dollars
B) $1.39 billion/billion dollars
C) $1.66 billion/billion dollars
D) $2.2 billion/billion dollars

Question

Suppose a certain economy's consumption function is  where  and x 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) $3.7 billion/billion dollars 
B) $1.39 billion/billion dollars 
C) $1.66 billion/billion dollars 
D) $2.2 billion/billion dollars

Quizplus · Accepted Answer

The Answer of Suppose a certain economy's consumption function is  where  and x 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) $3.7 billion/billion dollars 
B) $1.39 billion/billion dollars 
C) $1.66 billion/billion dollars 
D) $2.2 billion/billion dollars

Suppose a Certain Economy's Consumption Function Is Where