You read in the Financial Times that in 2020, given lockdowns and restrictions, UK households have accumulated 150bn extra of savings. Briefly discuss the macroeconomic implications of this situation and consider also what might be the result if in 2021 households try to save more as a precaution given rising unemployment.

Is this question related to the "paradox" i.e. apparent contradiction because the desire to increase savings does not lead to an increase in either S or Y ???