The so-called Paradox of Thrift that became quite obvious in the Great Recession of 2007-2009 refers to all of the following, except:
A) Saving may be virtuous for the individual, but it could be bad for the economy as a whole
B) Consumers becoming thriftier may help long-term growth, but ironically reduces current output
C) In trying to spend less now, consumers will end up spending more later on
D) As individuals try to save more, the whole group may end up saving less as total income declines

Question

Quizplus · Accepted Answer

The Paradox of Thrift refers to the idea that if consumers try to save more in the short run, it can lead to a reduction in current output and economic growth. Option C is not a part of this paradox and instead contradicts it by suggesting that individuals who save more now will end up spending more later on, which would not necessarily contribute to the paradox.

The So-Called Paradox of Thrift That Became Quite Obvious in the Great