The Paradox of thrift states:
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1 mark, −0.33MacroeconomicsKeynesian cross and the multiplierThe paradox of thriftModerateabout 1 min
UoH 2010 Question 62: Keynesian cross and the multiplier
Answer and worked solution
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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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