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Suppose that we survey consumers in 2010 and plot consumption data against age. The resulting cross-sectional profile (the solid line in the graph) is downward-sloping.

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Suppose that we survey consumers in 2010 and plot consumption data against age. The resulting cross-sectional profile (the solid line in the graph) is downward-sloping. Can we conclude that the evidence is inconsistent with prediction by the life-cycle hypothesis that the consumption of each individ- ual is constant? Please elaborate. (3 points) Cross sectional profile, 2010 awwme Born 1990 Born 1980 Consumption Born 1970 Born 1960 20 30 40 50 Age . Denotes the age at which consumption is observed in the cross

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