CONSUMPTION FUNCTION:
It is the relationship between consumption expenditure and the level of disposable income.
C = f (Yd) , where
C represents the consumption expenditure
Yd represents disposable income
It shows how a change in income influences the consumption pattern
SAVING FUNCTION:
It is the relationship between savings and the level of disposable income
S = -S(bar) + sYd
where
S(bar) is autonomous saving
s represents marginal propensity to save
Yd represents disposable income
it shows how change in income influences savings