The Paradox of Thrift Suggests That When Households Intend to Save

question 176

Multiple Choice

The paradox of thrift suggests that when households intend to save more, they will _____ consumption, which will ultimately lead to _____ actual aggregate saving.

• A) reduce; lower
• B) reduce; higher
• C) increase; lower
• D) increase; higher

---

Definitions:

Felt Conflict

The personal and emotional experience of conflict by individuals, encompassing feelings of tension and hostility.

Conflict Antecedents

Factors or conditions that precede and contribute to the emergence or escalation of conflict between individuals or groups.

Accommodation

The cognitive process of adjusting existing cognitive schemas, perceptions, or understanding to incorporate new information.

Cooperative

Willingness to work jointly with others towards a common goal, often characterized by mutual help and teamwork.