The Next Questions Refer to the Following

Multiple Choice

The next questions refer to the following.
Consider an individual who enters adulthood and the labor force at age 18, expects to work 5 years at a real income of $10,000 per year, anticipates earning a real income of $40,000 per year from age 23 to 63, expects to retire with a $10,000 annual pension, and live until age 78. Suppose the interest rate is zero, and the individual seeks perfectly smooth consumption across his adult lifetime.
-If borrowing is precluded,then beginning at age 18,the individual will consume

A) $10,000 each year until age 23, then about $32,000 per year afterwards
B) $10,000 every year
C) all of his income as he receives it each year
D) $10,000 per year until age 23, then $25,000 per year afterwards
E) $25,000 every year