12) Why do consumers smooth consumption? A) To maximize today’s consumption B) To maximize lifetime consumption...
12) Why do consumers smooth consumption?
A) To maximize today’s consumption
B) To maximize lifetime consumption
C) To maximize lifetime utility
D) To minimize debt
E) None of above
Homework Answers
Customer smooth consumption simply meaning to have stability in the future in terms of consumer consumption
Their consumption increases or decreases as their income level behaves
So to have a proper accuracy and stability in the future, they focus on smooth consumption
Their main goal is not to maximize the total today's consumption because this violate the Rationality concept.
It is not related with the debt
Hence the correct answer is is option B
Add Answer to:
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