Distinguish between Consumption Function equation and Saving Function equation.
Distinguish between Consumption Function equation and Saving Function equation.
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Consumption Function equation:
C = C + MPC (Y)
Where C = Total Consumption
C = Autonomous Consumption
MPC = Marginal Propensity to Consumer
Y = Income
Saving Function equation:
S = -S + MPS (Y)
C = Autonomous consumption
S = Total Saving
MPS = Marginal Propensity to Save
Y = National Income
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