The paradox of thrift states that an attempt of households to save more may result in...

The paradox of thrift states that an attempt of households to save more may result in them ending up saving less. Could this be the case in the IS-LM model? Answer by finding the multiplier for the effect of an autonomous increase in saving on the equilibrium level of saving, and explain the result.

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Rahul Sunny answered 1 year ago

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