The saving function shows the relationship between saving and
A)the interest rate.
B)the price level.
C)disposable income.
D)consumption.
E)nominal income.

Question

Quizplus · Accepted Answer

The saving function shows the relationship between saving and disposable income. As disposable income increases, saving also increases, and vice versa. The other variables listed do not necessarily have a direct relationship with saving.

The Saving Function Shows the Relationship Between Saving and