Consumption Smoothing Is the Idea That

question 2

Multiple Choice

Consumption smoothing is the idea that:

• A) you can save your income as a child to fund your retirement
• B) people prefer to have a constant salary over their lifetime
• C) the government intervenes to insure that salaries don't change, but remain smooth to enable easier decision making
• D) you can borrow when your income is low and pay back when your income rises

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Definitions:

Pollinator Wasps

Wasps species that participate in pollination, transferring pollen from one flower to another and assisting in plant fertilization.

Descent With Modification

A principal of Darwin's theory of evolution, describing how species change over time through the inheritance of physical or behavioral traits.

Evolution by Natural Selection

A mechanism proposed by Charles Darwin whereby organisms better adapted to their environment tend to survive and produce more offspring.

Evolutionary Events

Significant occurrences in the history of life that have led to changes in species over time, including mutations, gene flow, and natural selection.