The Paradox of Thrift Is That If Everyone Tries to Save

question 185

True/False

The paradox of thrift is that if everyone tries to save more, in total, they might save less.

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Definitions:

Belonging Needs

Psychological requirements for human well-being emphasizing the importance of interpersonal connections and being part of a group or community.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, outlining a hierarchy of needs from physiological at the base, ascending to safety, love/belonging, esteem, and self-actualization.

Organization

The arrangement or structuring of elements in a systematic way to achieve goals and objectives.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which can lead to more informed decision-making and better interpersonal relations.