What value will you assign to the slope of the savings function S, when the slope of C-function is given to be =0.6?
Slope of C-function =MPC
Slope of S-function =MPS
Since, MPC + MPS=1
Slope of S- function =1−MPC
=1−0.6=0.4
If the consumption function is C = bY, what will be the saving function denoted by S?
How would you specify the saving function, if the consumption function is given below?
C = bY