Mathematics · Integral Calculus & Economics Application
If the marginal propensity to save function is given by S'(Y) = 0.3 - 0.1 Y-1/2, where Y is the level of national income, what will be the total saving function S(Y) if aggregate saving is zero when Y = 81?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1S = -12.5 - 0.3 Y + 0.24 Y1/2
- 2S = -2.5 - 0.3 Y + 0.2 Y1/2
- 3S = 10 + 0.2 Y - 0.45 Y1/2
- 4S = -22.5 + 0.3 Y - 0.2 Y1/2✓
Correct answer
S = -22.5 + 0.3 Y - 0.2 Y1/2
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