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Consumption smoothing implies that people should save a greater portion of a temporary increase in income. base their co

Posted: Thu Apr 28, 2022 12:35 pm
by answerhappygod
Consumption smoothing implies that people should
save a greater portion of a temporary increase in income.
base their consumption on current rather than lifetime
income.
save more when current income falls below lifetime income.
spend a greater proportion of a temporary tax cut than a
permanent tax cut.