The Paradox of Excessive Consumption Argues That When Households Spend

Multiple Choice

The paradox of excessive consumption argues that when households spend all they earn,

A) actual output and potential output will be in equilibrium.
B) the financial anxiety of families will be low.
C) the economy will achieve rapid, sustainable growth.
D) consumption can stagnate because families are in a poor position to deal with increases in debt and financial setbacks.