Question

Saving function shows the
relationship between Which of the
two factor.?​

Answer 1

The relationship between saving and income is called saving function. Simply put, saving function (or propensity to save) relates the level of saving to the level of income.

hope it helps

Answer 2

The saving function shows the relationship between income level and savings.

• Saving is the income remaining after the expenditure.
• Therefore saving and consumption are related, as saving is that part of the income that has not been consumed.
• Thus, as income level increases savings increase and vice versa.

If 'Y' is the income, 'S' is the saving and 'C' is the consumption then;

Saving function, S = f(Y), where Y = S+C