As
we have already understood various components of savings, now here we will
understand the saving function graphically.
Tabular explanation of Consumption
function
Y(Rs)
|
C (Rs)
|
S (
Y- C)
|
0
20
40
60
80
100
120
|
30
35
40
45
50
55
60
|
-30
-15
0
15
30
45
60
|
The above table shows:
Like
consumption, saving is an increasing function of the level of income, i.e. the
amount of saving increases with an increase in the level of income.
