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Derive the saving curve from consumption …

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Derive the saving curve from consumption curve

    • Posted by Tamanna Bhadana 4 years ago

    CBSE > Class 12 > Economics
    • 2 answers

    Xii-E Archita Bhadana 4 years ago

    Padrhe ho tamanna

    0Thank You

    Utkarsh Soni 4 years ago

    Saving function refers to the functional relationship between saving and income. The following steps shows the derivation of saving function. We know that, Y= C+S —— 1equ. And C = C— + ay ——2equ. Putting equ 2nd in equ 1st Y= C— + ay + S Y–ay = C— + S Y(1–ay) = C— + S S = –C— + (1–ay) Y Where Y = income C— = autonomous consumption (Y=0, C greater than 0) (1–a) MPS marginal propensity to consume.

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