If all the people of the economy increase the proportion of income they save the total value of savi...........

Indian Economic System Financial System

If all the people of the economy increase the proportion of income they save, the total value of savings in the economy will either decrease or remain unchanged. This phenomenon is known as:

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CAPF 2023 Paper-1

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Crowding out

Crowding in

Paradox of thrift

Paradox of prosperity

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Explanation:

Paradox of thrift.

The paradox of thrift is a paradox of economics.
The paradox states that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will in turn lower total saving.

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