consumption bundle. 3. Suppose Smith from Problem 1 views current and future consumption as one to one com 5 1. Smith lives in a world with two time periods. Hgsgsgshhshehis income in each period, which he receives at the b eginning of each period, is $210 . If the interest rate, expressed as a fraction, is 0.05 per time periwhat is the present value of his lifetime income? Draw his intertemporal budget constraint. 0n the same axes, draw Smiths intertemporal budget constraint when r = 0.20