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

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

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According to the paradox of saving, a reduction in the desire to save will lead to an increase in the propensity to consume. This, in turn, leads to an increase in aggregate demand and equilibrium GDP. Therefore, choice A, an increase in equilibrium GDP, is the best answer.

Based on Our Understanding of the Paradox of Saving,we Know