Consumption smoothing is an implication of the neoclassical model of consumption.This is because a rise in income either today or the future reduces present value consumption,smoothing consumption.

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In the neoclassical model, consumption smoothing implies that individuals spread out their consumption over time to maintain a stable consumption path, not that a rise in income reduces present value consumption.

Consumption Smoothing Is an Implication of the Neoclassical Model of Consumption.This