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Which Statement(s) Is/are TRUE Regarding the Paradox of Thrift? I

question 211

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Which statement(s) is/are TRUE regarding the paradox of thrift? I. People intend to save less but their actions actually lead to an increase in savings.
II) For the paradox of thrift to occur, investment must be positively related to income.
III) The increased savings of households leads to more consumption, income, and output, increasing investment and aggregate savings.


Definitions:

Assumptions

Beliefs or ideas taken for granted without proof, often used as a basis for reasoning and decision-making.

Leader's Influence

The impact a leader has on their team's behavior, attitudes, and performance.

Absenteeism

The habitual non-presence of an employee at their job, which can negatively impact business operations and morale.

Dissatisfaction

A state of being unhappy or not satisfied with a situation, outcome, or the quality of something.

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