The paradox of thrift occurs when 1. an increase in saving raises output. 2 an increase in saving reduces output. 3. saving is unrelated to output. 4. a decrease in saving reduces output. If per capita real output is growing taster than real GDP it must be the case that. 1. real GDP is increasing. 2. real GDP is decreasing. 3. total population is increasing. 4. total population is decreasing. The Federal Open Market Committee: 1. makes decisions that influence the amount of excess reserves available to banks