Which of the following statements is true in regards to saving and income?

1. Savings may be positive when the levels of income are low in the economy.
2. Savings are zero when consumption is equal to income earned.
3. Savings are positive when consumption is less than income
4. Saving is a positive function of income i.e. they share an inverse relationship with each other

2 and 3

In an economy, income is either saved or consumed. Savings is a function of income i.e. saving increase with increase in income and vice versa. They share a positive relation which each other i.e. direct relationship. Savings may be negative when the level of income is low i.e. when C > Y, it is 0 when consumption is equal to income i.e. when C = Y and savings are positive when consumption is less than income i.e. C < Y