In the absence of consumption smoothing, the following are possible:
A) income and consumption are balanced yearly, and consumption does not fluctuate with income.
B) consumption fluctuates with income.
C) consumption does not have to change as income changes.
D) income and consumption are balanced yearly, and consumption fluctuates with income.

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The Answer of In the absence of consumption smoothing, the following are possible:
A) income and consumption are balanced yearly, and consumption does not fluctuate with income.
B) consumption fluctuates with income.
C) consumption does not have to change as income changes.
D) income and consumption are balanced yearly, and consumption fluctuates with income.

In the Absence of Consumption Smoothing, the Following Are Possible