Distinguish between: 5) Consumption Function and Saving Function

Distinguish between:
5) Consumption Function and Saving Function

Consumption Function
Savings Function
It depicts the relationship between consumption expenditure and the level of disposable income
It depicts the relationship between savings and the level of disposable income.
C = f (Yd), where
C represents consumption expenditure
Yd represents disposable income.

It shows how a change in income influences the consumption pattern.
It shows how a change in income influences savings.

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