marginal propensity to save

marginal propensity to save definition - business

marginal propensity to save

The proportion of additional disposable income devoted to savings rather than consumption spending. A high marginal propensity to save frees a country's resources for investment use, but too high a propensity to save may result in a recession from lack of consumer spending.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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