Based on Our Understanding of the Paradox of Saving,we Know

question 55

Multiple Choice

Based on our understanding of the paradox of saving,we know that a reduction in the desire to save will cause

• A)an increase in equilibrium GDP.
• B)a reduction in GDP.
• C)an increase in the desire to invest.
• D)no change in equilibrium GDP.
• E) a permanent reduction in the level of saving.

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Definitions:

Automatic System

Cognitive processing that occurs subconsciously and effortlessly, often responsible for quick judgments and reactions.

Automatic System

An unconscious, fast, and often involuntary process of information processing in the brain, which contrasts with deliberate and effortful processing.

Socially Acceptable

Behaviors or practices that are widely approved of within a society or cultural group.

Automatic System

This term relates to cognitive processing that functions effortlessly, quickly, and without the need for conscious guidance, as opposed to the deliberate system.