Suppose 
measures an economy's personal consumption expenditure and x the personal income, both in billions of dollars. Then, 
measures the economy's savings corresponding to an income of x billion dollars. Then ![]()
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The quantity dS/dx is called the marginal propensity to save.
?
For the consumption function 
, where 
and x are measured in billions of dollars, find the marginal propensity to save when 
.
?
A. -$0.213 billion/billion dollars
B. $0.874 billion/billion dollars
C. -$0.85 billion/billion dollars
D. $0.119 billion/billion dollars
Answer: A
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