The Christmas story could be set in various locations depending on the specific version or interpretation. Sometimes it's in a small town, other times in a big city.
It depends. In some cases, double spacing can make the text more readable during the editing process. But for final submissions, it often follows specific publisher or submission guidelines.
Typically, the setting of the Christmas story is envisioned as a traditional, snow-covered town where the spirit of Christmas is alive and well. This could be anywhere that evokes a sense of warmth and community during the holiday season.