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In the income-expenditure model, when households try to save more, the result is a lower level of real GDP and no change in national saving.
In the income-expenditure model, when households try to save more, the result is a lower level of real GDP and no change in national saving. This is called:
a. the interest rate effect
b. the wealth effect
c. the paradox of thrift
d. expansionary monetary policy
e. the transfer-payment multiplier
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