The "paradox of thrift" refers to the understandable tendency of people who are worried about their economic situation to their saving, but in aggregate this behaviour causes a recession.
A)increase; more severe
B)increase; shorter
C)decrease; less severe
D)increase; less severe
E)decrease, more severe

Question

Quizplus · Accepted Answer

The "paradox of thrift" suggests that while individuals may save more during economic uncertainty, this collective increase in saving can lead to decreased aggregate demand, potentially worsening a recession.

The "Paradox of Thrift" Refers to the Understandable Tendency of People