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<strong>Term-based school</strong> – A school that uses standard academic terms, such as quarters, trimesters, or semesters.
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paradox of thrift (E2)<br />The contradictory effects of saving as it is both beneficial in providing funds for investment but detrimental to an underemployed economy. SMITH and other CLASSICAL ECONOMISTS believed that what is saved is invested so there cannot be excessive saving. However, KEYNES and leading Swedish economists of the 1930s believed that there could be an imbalance between EX ANTE saving and investment. Hoarding savings instead of investing them contributes to a reduction in AGGREGATE DEMAND and the making of a recession. The new millennium began with low personal sector savings in many industrialized countries.<br /> See also: savings ratio; Stockholm School
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