To understand the paradox of thrift, we must assume that investment is unrelated to income.

Name: To understand the paradox of thrift, we must assume that investment is unrelated to income.
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The paradox of thrift suggests that increased saving can lead to a decrease in aggregate demand and thus lower total savings in the economy. It assumes that investment is related to income, as lower income can lead to reduced investment.

To Understand the Paradox of Thrift, We Must Assume That