The Paradox of Thrift Will Not Arise If

question 43

Multiple Choice

The paradox of thrift will not arise if:

• A)increases in saving are translated into identical increases in investment.
• B)increases in saving are translated into identical decreases in consumption.
• C)decreases in saving are translated into identical increases in investment.
• D)decreases in saving are translated into identical decreases in consumption.

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Definitions:

Governor Cutout

A mechanism or setting in engines and machinery that limits the maximum speed or output to prevent damage or conserve energy.

Psi

Pounds per square inch, a unit of pressure used to quantify internal pressure, stress, or tensile strength.

Decelerometer

Measures the change in angle of a chassis when it is subjected to aggressive braking. This angle is also known as load transfer, dynamic pitch.