Which of the Following Is NOT Consistent with the Paradox

question 21

Multiple Choice

Which of the following is NOT consistent with the paradox of thrift?

• A) Changes in savings cause changes in consumer spending.
• B) Interest rates adjust to move the loanable funds market to equilibrium.
• C) Changes in consumer spending cause changes in aggregate demand.
• D) The level of aggregate demand impacts the output level in the country.

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Definitions:

Sapwood

The outer, lighter part of a tree trunk that is active in the transport of water and nutrients.

Functional Secondary Xylem

The part of a plant's vascular system that is responsible for water and nutrient transport, developed after the primary growth phase.

Monocot Stem

is the stem found in monocotyledonous plants, characterized by scattered vascular bundles.

Pith

The soft, spongy tissue at the center of plant stems, providing structural support and storing nutrients.