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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)
Definition of AVERAGE PROPENSITY TO SAVE: The amount after tax that is not spent on consumer goods. This varies depending on the income level. The Law Dictionary Featuring Black's Law Dictionary Free Online Legal Dictionary 2nd Ed.