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Question Practice

What can cause a 'paradox of thrift' in the economy?

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MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Determination Of Income And Employment
Question Bank

What can cause a 'paradox of t...

Single Answer MCQ
Q-00089098

What can cause a 'paradox of thrift' in the economy?

1

Increase in household savings leading to decreased aggregate demand

2

Increase in government spending

3

Increase in production costs

4

Decrease in interest rates

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In the two-sector model, the term 'A' in the equation Y = A + cY represents what?

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