All of the following are considered as consumption smoothing except:
A) eating two good meals every day rather than having several three-meal days followed by several one-meal days
B) spending less on daily basis to save for dowries for daughters or bride prices for sons
C) if households have fewer or smaller fluctuations,they are willing to accept lower average consumption
D) households take out a loan to spend more than their current income even if it means they have to consume much less in the future

Question

Quizplus · Accepted Answer

Option A, B and C are all examples of consumption smoothing techniques as they try to minimize the fluctuations in consumption over time. Option D, however, is not a consumption smoothing technique as it involves borrowing and increasing current consumption at the expense of future consumption.

All of the Following Are Considered as Consumption Smoothing Except