Q: If all the people of the economy increase the proportion of income they save, the total value of savings in the economy will either decrease or remain unchanged. This phenomenon is known as:
(a)Crowding out
(b)Crowding in
(c)Paradox of thrift
(d)Paradox of prosperity
Correct Answer: (c)
The correct answer is (c) 'Paradox of thrift'. This question from the Quantitative Aptitude & Data Interpretation domain tests knowledge of Numerical Ability.