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marginal propensity to save (E2)<br />The change in saving resulting from income increasing by one unit. In a simple economy described by the equation national income = consumption + saving, the MARGrNAL PROPENSITY TO CONSUME plus the marginal propensity to save is equal to unity. An economy with a high marginal propensity to save will have little scope for MULTIPLIER expansion of its national income as saving is a withdrawal from the CIRCULAR FLOW of income.
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regional banking pacts (G2)<br />US banking agreements used to overcome the restrictive banking legislation that banned interstate commercial banking to create, in effect, interstate banks. The first pacts were between neighbouring states, e.g. in New England, excluding MONEY CENTRE BANKS.
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