The concepts of 'excess sensitivity' and 'excess smoothness' are explained by the following statement(s).
A. 'Excess sensitivity' refers to a situation where consumption over-responds to temporary income shocks.
B. 'Excess smoothness' refers to a situation where consumption under-responds to temporary income changes.
C. With excess sensitivity, anticipated rise in income is associated with relatively small change in consumption.
D. With excess smoothness, changes in aggregate income are associated with relatively large changes in aggregate consumption.
E. 'Excess sensitivity' and 'excess smoothness' are related to the empirical evidence on the permanent income hypothesis.
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