Multiple Choice
If all of the households and businesses start saving more during economic hard times, then aggregate income will fall, hurting everyone in the economy. This is known as the:
A) quantity theory.
B) crowding-out theory.
C) paradox of thrift.
D) permanent income hypothesis.
Correct Answer:
Verified
Correct Answer:
Verified
Q111: Inflation:<br>A) is a movement of the economy
Q112: The most painful consequence of a recession
Q113: Which is MOST likely a macroeconomic, not
Q114: The concept that the whole is greater
Q115: The trade balance is the difference between
Q117: An increase in the nation's _ is
Q118: Following a trough, real GDP increases.
Q119: What do a rubber-necking traffic jam and
Q120: A nation whose value of imports exceeds
Q121: Fiscal policy entails changes in the quantity