Based on our understanding of the paradox of saving, we know that a decrease in the desire to save will cause:

Question

Quizplus · Accepted Answer

The paradox of saving states that if everyone tries to save more money, they will end up reducing their incomes and spending, which will eventually lead to a decrease in output and employment. Therefore, a decrease in the desire to save would lead to an increase in spending and incomes, which would lead to an increase in equilibrium output.

Based on Our Understanding of the Paradox of Saving, We