The paradox of thrift is that if everyone tries to save more,in the aggregate they might just save less.
Correct Answer:
Verified
Q17: Aggregate expenditures are equal to consumption plus
Q71: The Keynesian conclusion that total injections equal
Q77: A tax decrease has more of an
Q110: The larger a country's marginal propensity to
Q125: Added spending causing income to grow by
Q157: In the Keynesian model, desired investment equals
Q222: Injections in the simple Keynesian model are
Q240: The multiplier effect relates a change in
Q259: It does not matter whether injections into
Q260: To understand the paradox of thrift, we
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents