Question

what is meant by Saving function with the help of diagram.​

Answer 1

Answer:

The saving function is the counterpart (matching part) of the consumption function. The amount of saving at any level of income is equal to the difference between the income and consumption expenditure. ... In the above diagram, 'SS' curve is the saving curve, which is the counterpoint of consumption curve 'CC'.

Explanation:

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Answer 2

Answer:

Savings function refers to the standard equation of savings which defines the relationship between savings and income where savings value can be derived at each level with the use of income value.

S= s + Y(1-b) where s=autonomous savings, (1-b)= marginal propensity to save, and Y= income.

For example, s= -50 and MPS= 0.5

Income (Y) Savings = s+ (1-b) Y

0 -50

100 0

200 50

Explanation:

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