The "Paradox of Thrift" is a famous idea in macroeconomics-one that we will discuss in later chapters. The basic idea is that if every household in the economy tries to increase its level of desired saving, the level of national income will fall and they will end up saving no more than they were initially. Use the model and diagrams of this chapter to show how an (autonomous) increase in desired saving would reduce equilibrium income and lead to no change in aggregate saving.