Question

discuss the role of the real force of thrift and productivity in determination of the rate of interest?​

Answer 1

Answer:

• The paradox of thrift, or paradox of savings, is an economic theory that posits that personal savings are a net drag on the economy during a recession. This theory relies on the assumption that prices do not clear or that producers fail to adjust to changing conditions, contrary to the expectations of classical microeconomics. The paradox of thrift was popularized by British economist John Maynard Keynes.

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