Paradox of Thrift
Paradox of Thrift. do you agree with this assesment?
250 words no specific format. 2 references.
An interesting paradox called the “Paradox of Thrift” arises when households become concern about their future and attempt to increase their saving. As a consequence of such action the overall economy will suffer. Explain. Do you agree with this assessment?
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Paradox thrift theory is a theory that explains that personal saving during an economic recession are a net drag on the economy. This is where individuals decide to save when they realize that they are spending more in a straitening economy. John Maynard Keynes, was the first Economist to popularize this theory in his book…
(310 Words)