With reference to the "Paradox of Thrift", consider the following statements:
1. Paradox of thrift was popularized by the renowned economist John Maynard Keynes.
2. It states that individuals try to save more during an economic recession, which essentially leads to a fall in aggregate demand.
3. The paradox of thrift ignores the potential for saved income to be lent out by banks.
Which of the statements given above are correct?
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2 and 3
5
Question Not Attempted