The Idea That an Increase in Savings Can Lead to a Reduction

question 78

Multiple Choice

The idea that an increase in savings can lead to a reduction in consumer spending and total spending - which leads to fewer jobs, less income, and lower savings - is known as:

• A) countercyclical saving.
• B) Keynesian bartering.
• C) spending neutralization.
• D) the paradox of thrift.

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Definitions:

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