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Questions › UGC-NET › UGC-NET 2023 › Q46
2 marksMacroeconomics › Keynesian cross and the multiplier › The paradox of thriftModerateabout 1 min

UGC-NET 2023 Question 46: Keynesian cross and the multiplier

Which of the following is/are true about the paradox of thrift?

A. Paradox of thrift was popularized by J. M. Keynes.

B. It states that personal savings can be detrimental to overall economic growth.

C. It shows the relationship between output growth and rate of unemployment.

D. It shows the relationship between inflation and rate of interest.

E. It states that individuals saving during an economic recession leads to fall in aggregate demand.

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Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.

What this question tests

This question is on The paradox of thrift, part of Keynesian cross and the multiplier in Macroeconomics.

Why an attempt to save more can leave total saving unchanged or lower income.

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