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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)
A related marginal measure is the marginal propensity to consume. The marginal propensity to import (MPM) indicates the extent to which imports are induced by changes in income or production. If, for example, the MPM is 0.1, then each dollar of extra income in the economy induces 10 cents of imports. The marginal propensity to import is important to the study of Keynesian economics. First, the MPM reflects induced imports.