If all the peop<= in economy increase savings, what will happen in the economy ?

Increase in consumption is cal<=d Paradox of thrift

CUET Economics - If all the people in economy increase savings, what will happen in the economy ? | PYQs + Solutions

CUET Economics

Macro

Easy

The total value of savings in economy will not increase, it will either decline or remain unchanged

Increase in consumption is called Paradox of thrift

Aggregate demand will increase

Producers decide to increase the product

✅ Correct Option: 1