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Suppose a Person's Preferences Are to "Consumption Smooth," Which Means

Question 21

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Suppose a person's preferences are to "consumption smooth," which means they wish to get Suppose a person's preferences are to  consumption smooth,  which means they wish to get   for all incomes and interest rates.For any interest rate and   ,the person will ____ in the first period. A)  borrow B)  save C)  neither borrow nor save D)  both borrow and save for all incomes and interest rates.For any interest rate and Suppose a person's preferences are to  consumption smooth,  which means they wish to get   for all incomes and interest rates.For any interest rate and   ,the person will ____ in the first period. A)  borrow B)  save C)  neither borrow nor save D)  both borrow and save ,the person will ____ in the first period.


A) borrow
B) save
C) neither borrow nor save
D) both borrow and save

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