Question

Explain how we can derive the saving function from the consumption function by using diagram.​

Answer 1

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:

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