Consumption smoothing refers to
A) the tendency of all consumers to choose the same amount of current consumption.
B) the tendency of consumers to seek a consumption path over time that is smoother than income.
C) the tendency of consumers to seek an income path over time that is smoother than consumption.
D) consumer's concerns about going heavily into debt.
B
Economics
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In the game in Scenario 13.11, equilibrium is
A) R1, C1. B) R1, C2. C) R2, C1. D) R2, C2. E) a mixed strategy based on all four pure strategies.
Economics
In the standard 45° line expenditure model, the C + I line and the C line are parallel because
A. all I is assumed to be autonomous. B. all I is assumed to be induced. C. consumption depends on disposable income. D. I rises with GDP at the same rate as C.
Economics