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Marginal utility of money
In this guide
The increase in total utility which results from increasing the quantity of money an individual has by one unit. Since, typically, money is only valued because of the power it gives to buy goods (now or in the future), the marginal utility of money must ultimately derive from the marginal utilities of the goods (and saving) on which it is spent. Consistent with the law of diminishing marginal utility, it is generally held that the marginal utility of money diminishes as the quantity of money possessed by an individual increases.
Reference: The Penguin Dictionary of Economics, 3rd edt.
