(Solved): 20,4 points Cuts in public expenditure do not guarantee a reduction in the gover Aggregate demand ...

points Cuts in public expenditure do not guarantee a reduction in the gover Aggregate demand falls, and firms invest less There is a fall in autonomous consumption Firms will try to pay less tax Aggregate demand will fall, reducing government revor

points Cuts in public expenditure do not guarantee a reduction in the gover Aggregate demand falls, and firms invest less There is a fall in autonomous consumption Firms will try to pay less tax Aggregate demand will fall, reducing government revor 214 points The 'paradox of thrift' refers to the fact that: If we all save more, aggregate income will fall The wealthier I become, the more tax I have to pay Saving is a waste of time Inflation erodes the value of savings.