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  3. Finance Glossary
  4. Terms Beginning With M
  5. Marginal Propensity to Save

Marginal Propensity to Save

Definition of 'Marginal Propensity to Save'

The fraction of each extra unit of income that households wish to save.

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Related Terms

Marginal Propensity to ImportDiminishing Marginal Rate of SubstitutionDistortionMarginal FirmMarginal Rate of SubstitutionMarginal UtilityMCCMEIChildrens Bonus BondsParadox of ThriftDiminishing Marginal UtilityMarginal CostMarginal Cost of CapitalMarginal Efficiency of InvestmentMarginal Product of LabourMarginal RevenueMarginal Value Product of CapitalPeak Load PricingThe Law of Diminishing ReturnsTwo-Part Tariff

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