Savings are good for a family. If all families increase savings, the economy is better off. This fallacy of composition is called:
a. the paradox of time.
b. the paradox of dissaving.
c. the paradox of thrift.
d. the paradox of value.
e. the paradox of choice.
c
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Improvements in information technology over the past decade have enhanced labor productivity. What has been a likely result of this change?
A) Unemployment has increased. B) Entrepreneurs no longer have an incentive to invest in information technology. C) Capital productivity has declined. D) The rate of economic growth has increased.
The opportunity cost of hold real money balances is the:
A) interest rate. B) price level. C) all of the above. D) none of the above.
Inflation tends to redistribute real income from lenders to borrowers
a. True b. False Indicate whether the statement is true or false
Which of the following is part of the modern view of the Phillips curve?
a. When inflation exceeds what was anticipated, unemployment falls below the natural rate. b. When inflation is less than anticipated, unemployment will rise above the natural rate. c. Demand stimulus policies can temporarily reduce unemployment, but in the long run, their primary impact will be on prices (inflation). d. All of the above are correct.