CONSUMPTION SMOOTHING Definition

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CONSUMPTION SMOOTHING is aimed at protecting consumption patterns from the impact of shocks, and can take effect either before or after their occurrence. Post-shock responses include modifying consumption, raising income by mobilizing labor or selling assets, drawing on informal or formal sources of savings, or activating claims on informal insurance mechanisms.

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PRICE TO CASH FLOW is a measure of the markets expectations of a firms future financial health. It is calculated by dividing the price per share by cash flow per share.

BMR, among others, is Base Mortgage Rate.

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