The Paradox of Excessive Consumption Argues That When Households Spend

question 86

Multiple Choice

The paradox of excessive consumption argues that when households spend all they earn,

• A) actual output and potential output will be in equilibrium.
• B) the financial anxiety of families will be low.
• C) the economy will achieve rapid, sustainable growth.
• D) consumption can stagnate because families are in a poor position to deal with increases in debt and financial setbacks.

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Definitions:

Skeletal Muscle

A type of muscle tissue that is attached to bones and is responsible for voluntary movements of the body.

Origin

The fixed attachment point of a muscle to bone, serving as the starting point for muscle contraction.

Attachment Site

The specific area or location where an organism, cell, or molecular structure binds or connects to another.

Motor Units

Components of the muscular system that include a motor neuron and the skeletal muscle fibers innervated by that neuron's axonal terminals.