Smoothing consumption and income are motivations for several actions that individuals take- saving, borrowing, lending, investment... it is also an optimal individual choice to overcome the impacts of unemployment and recession. Write an essay on the role, importance and methods of consumption (and income) smoothing in the study of macroeconomics. You may use figures, diagrams and tables to suppprt your answer.

Smoothing consumption and income are motivations for several actions that individuals take- saving, borrowing, lending, investment... it is also an optimal individual choice to overcome the impacts of unemployment and recession. Write an essay on the role, importance and methods of consumption (and income) smoothing in the study of macroeconomics. You may use figures, diagrams and tables to suppprt your answer.

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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