If there is _____ rise in income, a consumption smoother will exhibit a small change in consumption.
A)a temporary
B)an announced
C)a permanent
D)an anticipated

Question

Quizplus · Accepted Answer

A consumption smoother will exhibit a small change in consumption if the rise in income is temporary, as they spread the temporary income over time rather than increasing consumption significantly.

If There Is _____ Rise in Income, a Consumption Smoother