Which of the following is true of the paradox of thrift?
a) The paradox of thrift occurs when investment is not related to income.
b) The paradox of thrift occurs when households intend to save less.
c) The paradox of thrift causes consumers to save less.
d) The paradox of thrift occurs when households intend to consume more
Ans: c) The paradox of thrift causes consumers to save less.
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The New York Yankees are playing the Boston Red Sox at Fenway Park. It is the bottom of the ninth inning, the score is tied 4-4, the bases are loaded, and there are no outs
Starting in the seats closest to the field, the crowd begins to stand and cheer , hoping that the Red Sox can drive in one more run and win the game. Describe the collective action problem that has developed in this situation.
An assumption of neoclassical growth theory is that
A) technological change is random. B) technological change can be influenced by savings. C) more growth encourages more technological change. D) None of the above answers is correct.