propensity to save

      in economics, the proportion of total income or of an increase in income that consumers save rather than spend on goods and services. The average propensity to save equals the ratio of total saving to total income; the marginal propensity to save equals the ratio of a change in saving to a change in income. The sum of the propensity to consume and the propensity to save always equals one (see propensity to consume).

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Universalium. 2010.

Look at other dictionaries:

  • propensity to save — /prəˌpensɪti tə seɪv/ noun the tendency of consumers to save instead of spending on consumer goods …   Marketing dictionary in english

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  • marginal propensity to save — UK US noun [S] (ABBREVIATION MPS) ► ECONOMICS the degree to which people will change how much they save in relation to a change in income …   Financial and business terms

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  • propensity to consume — ▪ economics       in economics, the proportion of total income or of an increase in income that consumers tend to spend on goods and services rather than to save. The ratio of total consumption to total income is known as the average propensity… …   Universalium

  • Marginal propensity to consume — In economics, the marginal propensity to consume (MPC) is an empirical metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase in disposable income (income… …   Wikipedia

  • Average propensity to consume — (APC) is the percentage of income spent. To find the percentage of income spent, one needs to divide consumption by income, orAPC=frac{C}{Y}. In an economy in which each individual consumer saves lots of money, there is a tendency of people… …   Wikipedia

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