One of the issue facing households in developing countries is how they cope with fluctuations or shocks which can arise from all of the following except:

Question

Quizplus · Accepted Answer

Fluctuations or shocks in household finances can arise from seasonal changes in weather, life cycle events such as marriage and old age, and market prices. Consumption smoothing is a strategy used by households to cope with these fluctuations, which involves spreading out consumption patterns over time to ensure a consistent level of consumption. Therefore, D is not a correct answer as it is actually a strategy that households use to cope with fluctuations.

One of the Issue Facing Households in Developing Countries Is