The paradox of thrift maintains that a Society's desire to save more __________ .
The paradox of thrift describes a fall in equilibrium output without an increase in aggregate saving when society tries to save more. Lower consumption reduces income until…
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The paradox of thrift maintains that a Society's desire to save more __________ .
Answer and explanation
Correct answer A
The paradox of thrift describes a fall in equilibrium output without an increase in aggregate saving when society tries to save more. Lower consumption reduces income until the attempted increase in saving is offset by the decline in income.
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Tamil Nadu SET (TNSET)