The “Paradox of Thrift”

Part 1: 200 COUNT An interesting paradox called the “Paradox of Thrift” arises when households become concern about their future and attempt to increase their saving. As a consequence of such action the overall economy will suffer. Explain. Do you agree with this assessment? Part 2: 200 COUNT What are the basic objectives of monetary policy? Comment on the cause-effect chain through which monetary policy is made effective. What are the major strengths of monetary policy? Part 3: 200 COUNT Find a business example of outsourcing and explain the risks and benefits this company faces by outsourcing its components or finished products. Part 4: NO SPECIFIC COUNT, ANSWER QUESTIONS (Check Attachments)