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The relationship between the consumption function and the savings function can be described as:

a. Directly proportional
b. Inversely proportional
c. No relationship
d. Nonlinear relationship

User Sabarnix
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Final answer:

The consumption function and the savings function are inversely proportional.

Step-by-step explanation:

The relationship between the consumption function and the savings function is that they are inversely proportional.

The consumption function shows the relationship between national income and consumption. It has a positive slope, meaning that as income increases, consumption increases.

On the other hand, the savings function has a negative intercept and a positive slope. This means that when income is zero, the household will dissave, and as income increases, savings also increase.

User Ashley O
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