"Spending paradoxes" are situations where our intuitive ideas about spending, saving, or consuming money don’t align with rational economic behavior or long-term well-being.
Posts tagged as “Paradox of Thrift”
The Paradox of Thrift is a theory which says saving too much is damaging to the economy because people will consume less and companies will produce and invest less.
This article reviews the concept of the Circular Flow of Income (CFOI), National Income Equilibrium, Paradox of Thrift and The Multiplier Effect.