Marginal Propensity to save/consume

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February 21st 2010, 10:50 AM
lil_cookie

Marginal Propensity to save/consume

I am given the marginal propensity to SAVE:
$<br /> \frac{dS}{dI}=\frac{1}{2}-\frac{1.8}{\sqrt[3]{3I^2}}<br />$

and the first part of the question asks me to: find marginal propensity to CONSUME when total national income (I) is 81 billion

what exactly do I need to do? what is the formula used?

The chapter I am working on is integrals. Thank you!
February 21st 2010, 02:36 PM
lil_cookie

I searched a little online and saw that dS/dI = 1 - dC/dI so if i wanted the marginal propensity to consume could I use dC/dI = 1 + dS/dI?
February 22nd 2010, 07:35 AM
lil_cookie

any help is appreciated....thank you

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