Paradox of Thrift
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?
please use a minimum of 2 references along with in text citation apa format
Answer PreviewParadox of thrift is a situation whereby people tend to increase on their saving during recession which eventually causes a decrease in overall demand for commodities and also reduce economic development (Huo and Ríos-Rull, 2012). This theory assumes that prices do not…
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