a simple intertemporal model without uncertainty
u(c1, c2) = log(c1.c2) = logc1 + log c2
where c1 is consumption in period 1 and c2 is consumption in period 2
individual can convert good from period 1 to period 2 at the rate of (1+r) [r is interpreted as the rate of transformation or the interest rate]
Assuming income in period 1 is y and no income in period 2….