Negative saving is termed as ‘dis-saving’ which signifies the situation where consumption (C) exceeds income (Y)
As a result, component ‘’ becomes negative in Y = C + Propensity to save has been shown in fig. * shows the propensity to save curve left to point A, SS curve is negative because people do not save before income level OA. At point A, saving is zero (i.e. at point A, income is equal to consumption) beyond income level OA, saving increases because people save more with increased income.
