The proportion of additional income that a consumer or economy will consume rather than save, expressed as a decimal or fraction.
The Marginal Propensity to Save (MPS) represents the proportion of additional income that is saved rather than consumed by households. It plays a critical role in determining the economy's potential for investment and growth.
The savings rate represents the portion of income that is saved rather than spent. It is an important economic indicator that reflects the propensity of individuals or economies to save.
