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NYC NYC
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8 years ago
According to the "paradox of thrift," as individuals decrease their saving:
A) income in the economy will rise because the increased consumption that results from decreased saving causes the economy to expand.
B) income in the economy decreases because there is less money available for firms to invest.
C) income in the economy decreases because interest rates will rise and the economy will contract.
D) income in the economy will remain constant because the change in consumption equals the change in saving.
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
Authors:
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JesslynJesslyn
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NYC Author
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#2
8 years ago
I was thinking the same, thank you
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