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For this to happen, the marginal propensity to save needs to be strictly positive.
Marginal propensity to save is also used as an alternative term for slope of saving line.
Many studies have found that the marginal propensity to save is considerably higher among wealthier people.
This is called the marginal propensity to save.
Thus, we can see that a lower propensity to save implies a higher multiplier effect and vice-versa.
"Whatever our propensities to save may be, they can easily be changed by changing the institutions in which we make choices."
An important point to remember is that the size of the multiplier depends on the marginal propensities to save and import.
The current tax relief given to higher-income earners could be withdrawn without reducing their propensity to save.
If a population saves more money (that is the marginal propensity to save increases across all income levels), then total revenues for companies will decline.
They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results.
Marginal Propensity to Save is also a key variable in determining the value of the multiplier.
Japanese banks don't have to give away toasters to attract new deposits - their customers' propensity to save is strong.
Kaldor's assumption was that the workers propensity to save was zero.
Specifically, if you eliminate this assumption, the above formulas lose their conciseness, depending on the propensity to save of workers.
They concluded that most of the observed variation in retirement wealth is primarily a result of different propensities to save.
However, it will be noted that the above depends upon the propensity to save and not the propensity to unproductive consumption.
Some have claimed the services YehforGames.com provides has the propensity to save marriages, relationships, careers, and a great deal of personal time.
Also, marginal propensity to save is opposite of marginal propensity to consume.
The marginal propensity to save was thought to increase with wealth and inequality increases savings and capital accumulation.
Another common assumption is that of 'classical' savings, where there are different propensities to save by type of income or class.
Re-arranging (8-38), we have in steady-state where s is the propensity to save ().
At the same time, however, the propensity to save of the workers determines the distribution of profits between workers and capitalists.
The marginal propensity to save of the richer classes is greater than that of the poorer classes.
The marginal propensity to save might be defined as the proportion of each additional dollar of household income that is used for saving.
Such inequality, however, requires that the workers' propensity to save becomes so high as to allow them to accumulate capital at a greater speed than capitalists.