The paradox of thrift happens when many people save more and spend less, so businesses lower prices.

Name: The paradox of thrift happens when many people save more and spend less, so businesses lower prices.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The paradox of thrift occurs when increased savings lead to a decrease in aggregate demand, which can cause a decrease in total savings in the economy due to lower income and employment, not specifically because businesses lower prices.

The Paradox of Thrift Happens When Many People Save More