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Economic Definition of propensity-to-save line. Defined.

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Term propensity-to-save line Definition: A graphical depiction of the relation between household saving and household disposable income. The slope of this line is positive, greater than zero, less than one, and goes by the name marginal propensity to save. The vertical intercept of the propensity-to-save line is autonomous saving. The saving and investment, or leakage and injection, analysis used in Keynesian economics begins with the propensity-to-save line. Because consumption is the difference between disposable income and saving, the propensity-to-consume line is a complementary relation to the propensity-to-save line.


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