I am taking an online economics class and I hate it.
2007-11-30 01:20:04 · 3 answers · asked by goodytooshuz 1 in Social Science ➔ Economics
It shifts in the opposite direction. Assuming constant taxes, every dollar that is not spent on consumption is saved...
2007-11-30 04:50:29 · answer #1 · answered by NC 7 · 1⤊ 0⤋
If consumption function goes one way, the savings function will move in the opposite direction. If people are consuming more, then they are saving less, and vice versa.
2007-11-30 09:23:35 · answer #2 · answered by kamehameha 1 · 1⤊ 0⤋
Crittend is right. It is true for each level of Q
Some times we get confused when we listen "increase of consumptions" and it is the result of a increase of Q; in this case, save increase too but the saving and consumption do not change.
2007-11-30 09:46:25 · answer #3 · answered by CSI - Economics 4 · 0⤊ 1⤋