Related to the Economics in Practice on P

question 321

Multiple Choice

Related to the Economics in Practice on p. 156: According to the "paradox of thrift," as individuals increase their saving,

• A) income in the economy increases because there is more money available for firms to invest.
• B) income in the economy increases because interest rates will fall and the economy will expand.
• C) income in the economy will remain constant because the change in consumption equals the change in saving.
• D) income in the economy will fall because the decreased consumption that results from increased saving causes the economy to contract.

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Definitions:

Portability

Portability refers to the ease with which something can be moved or transferred, often used in the context of technology and benefits.

Own Speed

A phrase referring to the pace at which an individual chooses or manages to progress or accomplish something based on personal capability or preference.

Underprivileged Countries

Nations that lack the economic, social, and technological resources compared to more developed countries, often resulting in lower living standards.

Environmental Dangers

Refers to potential threats and adverse effects stemming from the natural environment or human activities that impact ecological balance or public health.