Economics · Macroeconomics and Keynesian Theory
The economic phenomenon wherein an autonomous attempt by individuals to save more during a recession leads to a fall in aggregate demand and a decrease in total savings is known as the:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Paradox of thrift✓
- 2Pigou effect
- 3Liquidity premium
- 4Ricardian equivalence
Correct answer
Paradox of thrift
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