What does the paradox of thrift suggest happens when people try to save more money?

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Income rises along with total savings.Income falls, leading to a reduction in total savings.Income declines, but total savings increase.Income increases while total savings remain unchanged.Savings increase without affecting income.

Explanation

The paradox of thrift explains that when individuals collectively increase their savings, overall income tends to decrease due to reduced spending. This decline in income can cause total savings to fall rather than rise, as lower income offsets the intention to save more.