The Intertemporal budget Constraint Period 2 income is m Savings plus interest from period 1 sum to (1+r )m- So total income available in period 2 is m2+(1+r)m1 So period 2 consumption expenditure sThe Intertemporal Budget Constraint Period 2 income is m2 . Savings plus interest from period 1 sum to (1 + r )m1 . So total income available in period 2 is m2 + (1 + r )m1 . So period 2 consumption expenditure is