Suppose that a person lives for two periods and chooses consumption in both periods to maximize the present discounted value of lifetime utility: = Cf\" +L. Ci\" 1}! 1+6 1y' V The intertemporal budget constraint is C2 = 2: +(1+(19)rs)(Y1 Cl) with a binding liquidity constraint, S 2 0 . The equation for desired saving for this utility function is [(1+(16)rs)z+m[%]y {1+(1+(19)r3)[\"(1:;9)'3]y}