Explain how we can derive the saving function from the consumption function by using diagram.
Answers
Answered by
4
Answer:
Saving function can be derived from the consumption function. ... Where MPC represents the slope of consumption curve and MPS (1 – c) represents the slope of saving curve. As MPS is positive, therefore, saving is an increasing function of the income level, i.e., saving increases with increase in income.
Explanation:
plz mark me as brainliest
Similar questions