Relationship between consumption and savings

Relationship between Consumption and Savings S = f(Y) If income increases, savings also increase, but at the higher rate than income. Propensity to Consumption (how much income is consumed) PC= Consumption/ Income Marginal Propensity to Consumption (how consumption changes with changing income) MPC = Change in Consumption/Change in Income. Consumption and Savings Income = Consumption + Savings The largest part of total spending is Consumption. C= f(Y) If income increases, consumption also increase, but not as quickly as income.