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What are the variables (the items measured on the axes) in a graph of the (a)...

What are the variables (the items measured on the axes) in a graph of the (a) consumption schedule and (b) saving schedule? Are the variables inversely (negatively) related or are they directly (positively) related? What is the fundamental reason that the levels of consumption and saving in the United States are each higher today than they were a decade ago?
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Answer #1

For Consumption schedule, the variables are income and consumption. Here, income is on X axis and consumption is on Y axis.

For saving schedule, the variables are savings and income. Here, income is on X axis and savings is on Y axis.  

For consumption as well as saving schedule, variables are directly related to each other. It is based upon MPC for consumption schedule and MPS for the saving schedule.

Consumption and savings are higher in the USA than that of a decade ago, because the income level has increased and per capita income has also increased. A higher consumption due to the MPC, will increase the value of AD and it will be catered by AS. As a result the economy expands and people have more disposable income. It contributes to the increase in savings.

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