Question

Write short note on Saving Function.

Answer 1

Saving Function. Saving function or the propensity to save expresses the relationship between saving and the level of income. It is simply the desire of the households to hoard a part of their total disposable income. Symbolically, the functional relation between saving and income can be defined as S= f(Y)

Answer 2

Short note on Saving Function is as follows;

• The relationship between income level and saving is expressed by Saving Function.
• In case of household matters, hoarding a part of the total income, it is the simple desire.
• So, function, saving and income are symbolized by F, S and Y. Thus the equation of Saving Function is S=f(Y).