The Notion of Consumption Smoothing Means

question 107

Multiple Choice

The notion of consumption smoothing means

• A) people tend to spend about the same amount each month.
• B) people tend to spend about the same amount each year,and if more is spent this year than in the past,they would tend to spend less next year.
• C) consumption varies less than income over a person's lifetime.In early life people tend to borrow,in late life people tend to dissave,but in their middle years they tend to save.
• D) consumption patterns tend to correlate perfectly with income.People spend the exact amount of their incomes over their lifetimes.
• E) consumption tends to vary more than income over a person's lifetime.Although people should smooth their consumption over the years,they don't.If consumption were smoothed,people would be better off.

Identify correct syntax for basic operations in C++.

Understand the concept and syntax of comments in C++.

Recognize the equivalence and differences between C++ and C syntax for common operations.

Understand the concept of object-oriented programming features such as class construction, inheritance, and polymorphism.

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Definitions:

Future Value

The value of an investment or asset at a specified date in the future, taking into account factors such as interest rates or earnings.

Ordinary Annuity

A sequence of identical payments that are distributed at consistent intervals, where the initial payment is made at the conclusion of the period.

RRSP

Registered Retirement Savings Plan, a retirement savings and investment account for holding savings and investment assets, recognized by the Canadian government.

Month-end Contributions

Payments or deposits made towards an investment or savings plan at the end of each month.