Consider consumption in two periods,
and
.Consumption smoothing implies people prefer to consume
.

Name: Consider consumption in two periods, and .Consumption smoothing implies people prefer to consume .
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Question

Consider consumption in two periods,  
and  
.Consumption smoothing implies people prefer to consume  
.

Quizplus · Accepted Answer

Consumption smoothing theory suggests that individuals want to maintain a stable standard of living over time and will smooth their consumption between periods, preferring to avoid significant fluctuations in their consumption levels. Therefore, the statement is true.

Consider Consumption in Two Periods