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Consumption Smoothing Is the Idea That

Question 28

Multiple Choice

Consumption smoothing is the idea that:


A) you can save your income as a child to fund your retirement
B) people prefer to have a constant salary over their lifetime
C) the government intervenes to insure that salaries don't change, but remain smooth to enable easier decision making
D) you can borrow when your income is low and pay back when your income rises

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