What is consumption smoothing? (i) Consumers lowering their consumption in order to increase their savings. (ii) Consumers keeping their consumption level equal to their new income. (iii) Consumer...

What is consumption smoothing?

(i) Consumers lowering their consumption in order to increase their savings.

(ii) Consumers keeping their consumption level equal to their new income.

(iii) Consumer borrowing to consume today, expecting future income.

(iv) All of the above.