Which One of the Following Represents Local Consumption Smoothing

question 28

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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Definitions:

Miraculous Draft

A biblical event depicted in the Gospels where Jesus instructs Simon Peter to cast his nets into the sea, resulting in a miraculously large catch of fish.

Flanders

A historical region now divided among Belgium, France, and the Netherlands, known for its flourishing art, commerce, and culture during the Middle Ages and Renaissance.

Holy Roman Empire

A multi-ethnic complex of territories in central Europe that developed during the early Middle Ages and lasted until its dissolution in 1806, ruled by the Holy Roman Emperor.

Burgundian Territories

Regions in Europe controlled by the Dukes of Burgundy during the Middle Ages, encompassing parts of modern-day France, Belgium, and the Netherlands.