The notion of consumption smoothing means
A) people tend to spend about the same amount each month.
B) people tend to spend about the same amount each year,and if more is spent this year than in the past,they would tend to spend less next year.
C) consumption varies less than income over a person's lifetime.In early life people tend to borrow,in late life people tend to dissave,but in their middle years they tend to save.
D) consumption patterns tend to correlate perfectly with income.People spend the exact amount of their incomes over their lifetimes.
E) consumption tends to vary more than income over a person's lifetime.Although people should smooth their consumption over the years,they don't.If consumption were smoothed,people would be better off.
Correct Answer:
Verified
Q88: T.D.Goneworth,a financial services firm,makes people want their
Q89: Assume an epidemic hits a nation hard.As
Q90: A nonprice determinant of the supply of
Q91: Stewart Shopaholic,a compulsive shopper who likes to
Q92: A young girl is saving money for
Q94: Typically a college degree is "worth it,"
Q95: When people withdraw funds from their savings,economists
Q96: A young boy is saving money for
Q97: If life expectancy falls due to AIDS
Q98: Based on the relationship between consumption and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents