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Propensity is defined as a natural tendency. An example of propensity is an inborn love for writing. pl. -Â·ties. 1  a natural inclination or tendency; bent.  Obs. favorable inclination; bias (for)
What is MARGINAL PROPENSITY TO SAVE? A small, disposable income's change proportion potentially saved instead of being spent on consumption. Divide the amount saved by the causal disposable income change.