Macro- & Monetary Economics

Prio: Normal, Part II: Keynes, Type: MC, Quiz 2

According to Keynes’ General Theory, the paradox of thrift implies that
 

  • a rise in individual savings leads to a fall in aggregate saving
     
  • a rise in individual savings leads to a rise in aggregate investment
  • a rise in individual savings does not lead to a rise in aggregate savings
  • a rise in individual savings leads to a fall in the real interest rate
 

Diskussion