Related to the Economics in Practice on P

question 8

Multiple Choice

Related to the Economics in Practice on p. 476: According to the "paradox of thrift," as individuals increase their saving

• A) income in the economy increases because there is more money available for firms to invest.
• B) income in the economy increases because interest rates will fall and the economy will expand.
• C) income in the economy will remain constant because the change in consumption equals the change in saving.
• D) income in the economy will fall because the decreased consumption that results from increased saving causes the economy to contract.

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Definitions:

Cult of Domesticity

A value system among the upper and middle classes during the 19th century in the United States and Great Britain that emphasized new ideals of femininity, piety, and the role of women as keepers of the home.

Industriousness

The quality of being hard-working and diligent, often leading to increased productivity and achievement.

Federal Government

The national government of a federation, responsible for areas of governance designated to the national level by the constitution.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant battles and events shaping modern history.