Those who criticise the existence of the paradox of thrift argue that an increase in savings increases the availability of funds (such as deposits)… | Cheap Nursing Papers

Those who criticise the existence of the paradox of thrift argue that an increase in savings increases the availability of funds (such as deposits)…

Those who criticise the existence of the paradox of thrift argue that an increase in savings increases the availability of funds (such as deposits) that can be used by banks in order to lend to firms. This higher amount of available funding reduces the interest rate and this induces firms to borrow more in order to invest, boosting economic activity. Do you agree with this critique? What could be the response of a Keynesian economist to this argument?

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