Which one of the following is an example of "global" consumption smoothing?

Question

Quizplus · Accepted Answer

Saving during your working years for retirement is an example of global consumption smoothing because it involves sacrificing present consumption for future consumption. By saving during their working years, individuals can maintain a relatively stable level of consumption throughout their lifetime, smoothing out the fluctuations in income that may occur. It is a global strategy because it takes into account an individual's entire lifetime consumption, rather than just short-term fluctuations. The other choices, such as borrowing to buy a car or a home, or saving for college, may involve consumption smoothing in the short term, but they do not address an individual's long-term consumption needs.

Which One of the Following Is an Example of "Global