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The Paradox of Thrift Refers to the Result That

Question 93

Multiple Choice

The paradox of thrift refers to the result that:


A) an attempt by households to save more will leave saving unchanged.
B) an attempt by households to save more will reduce saving.
C) an attempt by households to save more will reduce investment spending.
D) an attempt by households to save more will increase equilibrium income.

Correct Answer:

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