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Which One of the Following Represents Local Consumption Smoothing

Question 2

Multiple Choice

Which one of the following represents local consumption smoothing?
I. Saving during your working years for retirement
II. Borrowing money to buy a car
III. Putting off a vacation for a year until you can afford it


A) I only
B) II and III only
C) I and II only
D) I, II, and III

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