Consumption Smoothing Is Possible as Long as the Output Shock

question 107

Multiple Choice

Consumption smoothing is possible as long as the output shock is:

• A) temporary.
• B) permanent.
• C) less than 10%.
• D) more than the rate of interest.

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Definitions:

Specific Function

a distinct activity or role designed to achieve a certain objective within a larger system or organization.

Shared Values

Fundamental beliefs or ethics shared among members of an organization or group, which shape its culture and guide decision-making.

Routine Activities

Routine activities pertain to the regular, everyday tasks and behaviors that individuals engage in.

Subculture

A group of people within a larger culture who distinguish themselves through a unique set of behaviors, beliefs, or values.