The paradox of thrift explains that increased savings by households could actually lower savings for the economy as a whole
a. True
b. False
Indicate whether the statement is true or false
True
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Using the above figure, the perfectly competitive firm in the diagram will earn an economic profit if the market price is
A) P1. B) P2. C) P3. D) P4.
If Canada began to export maple syrup to Australia, which of the following will happen?
a. The price of maple syrup in Australia will increase and Australian consumers will be made worse off. b. The price of maple syrup in Australia will decrease and the Australian consumers will be made better off. c. The price of maple syrup in Canada will decrease and the Canadian consumers will be made better off. d. The price of maple syrup in Canada will increase and the Canadian consumer will be made worse off. e. The price of maple syrup in Canada will decrease and the Canadian consumer will be made worse off.
Other things being equal, the lower planned real expenditures along an aggregate demand curve are, the
A) lower the level of endowments. B) higher the price level. C) lower the price level. D) more the production possibilities cure shifts to the left.
Suppose there is a bank panic. Which of the following would not be a consequence of this bank panic?
A) Bank total reserves would decrease. B) Bank checking account balances would decrease. C) Required reserves would increase. D) The economy would likely enter into a recession. E) Individual banks would have to shrink the value of loans they made.