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Lack of Evidence of a Pattern of International Consumption Smoothing

Question 4

Multiple Choice

Lack of evidence of a pattern of international consumption smoothing is best explained by


A) government policies to fight trade deficits.
B) failure of consumers in less advanced economies to act rational.
C) a tendency for business cycles to be a worldwide phenomenon.
D) Ricardian equivalence.
E) very different levels of aggregate economic activity.

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