Somebody who prefers consumption in his youth, who we shall call a spender, will have the type of indifference curves below. They are steep because a large reduction in consumption in old age can be compensated for by a small increase in youth to make him indifferent OA Spender Now if we put budget constraints on these diagrams we can see that pushing a budget constraint out makes both better off OA 1010 Somebody who prefers consumption in his youth, who we shall call a spender, will have the type of indifference curves below. They are steep because a large reduction in consumption in old age can be compensated for by a small increase in youth to make him indifferent. Now if we put budget constraints on these diagrams we can see that pushing a budget constraint out makes both better off