The "Paradox of Thrift" Refers to the Understandable Tendency of People

question 89

Multiple Choice

The "paradox of thrift" refers to the understandable tendency of people who are worried about their economic situation to ________ their saving,but in aggregate this behaviour causes a ________ recession.

• A)decrease; more severe
• B)decrease; less severe
• C)increase; more severe
• D)increase; less severe
• E)increase; shorter

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Definitions:

Cultural Differences

Variations in the customs, values, behaviors, and artifacts of different societies or groups, often affecting communication and interaction among them.

Motivation

The inner drive or process that stimulates an individual to act towards achieving a desired goal.

Employees

Individuals hired by an organization to perform specific duties and tasks in exchange for compensation.

Incentive Pay

refers to additional compensation provided to employees as a means to motivate performance beyond normal expectations.