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What do you mean by propensity to save? - Economics

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प्रश्न

What do you mean by a propensity to save?

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उत्तर

  • Thus the consumption function measures not only the amount spent on consumption but also the amount saved.
  • This is because the propensity to save is merely the propensity not to consume.
  • The 45° line may therefore be regarded as a zero–saving line, and the shape and position of the C curve indicate the division of income between consumption and saving.
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Consumption Function
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पाठ 4: Consumption and Investment Functions - Model Questions [पृष्ठ ७४]

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सामाचीर कलवी Economics [English] Class 12 TN Board
पाठ 4 Consumption and Investment Functions
Model Questions | Q 25. | पृष्ठ ७४
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