According to ___________, if the marginal propensity to save in the economy increases, the total value of saving in the economy will not increase.

Option 1 -> Demand Elasticity measures the responsiveness of quantity demanded to price changes, not related to saving behavior.

Option 2 -> Parametric Shift refers to structural changes in economic parameters, but doesn't explain the saving paradox.

Option 3 -> Ex-ante Investment refers to planned investment before realization, not directly related to aggregate saving outcomes.

Option 4 -> Paradox of Thrift states that when individuals increase their propensity to save, aggregate demand falls, leading to lower income and potentially lower total savings.

Hence, Paradox of Thrift -> This Keynesian concept explains that while saving is virtuous at the individual level, if everyone saves more simultaneously, it reduces consumption and aggregate demand. This leads to decreased production, lower incomes, and ultimately may result in no increase (or even a decrease) in total savings despite higher marginal propensity to save. The paradox highlights the fallacy of composition in macroeconomics. -> correct