The paradox of thrift occurs when:
A. an increase in saving reduces output.
B. saving is unrelated to output.
C. an increase in saving raises output.
D. a decrease in saving reduces output.
Answer: A
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Government typically solves the free-rider problem by using its
A) ability to print money. B) power of eminent domain. C) ability to borrow money from the Federal Reserve. D) power of taxation.
We know that the minimum wage causes unemployment. So, why does the government impose a minimum wage?
What will be an ideal response?
You are given the following information on the various sectors of the economy. Derive the aggregate expenditure function
C = 100 + 0.75Y I = 200 + 0.20Y G = 500 X = 250 M = 100 + 0.10Y
The Lorenz curve represents: a. the line of perfect inequality
b. the line of perfect equality. c. the nonwage income of households. d. the actual distribution of income.