Overview
All of us save money. That's a good thing...right? Right?
In this discussion, we will explore what is meant by the Paradox of Thrift. In your initial post, please address the following:
- What is the Paradox of Thrift?
- Do you think the Paradox of Thrift is real or not? Explain why using examples and supporting evidence to make your case.
- As it relates to the Paradox of Thrift, should the Federal Reserve Board keep interest rates low? Why or why not?
- How would consumer spending and savings rates change if interest rates were kept low?