1) The document discusses consumption and saving over multiple time periods, presenting the household budget constraint equations for two periods and multiple periods. 2) It explains how the household chooses their consumption (C1 and C2) to maximize utility subject to the budget constraint, and how their consumption responds to changes in income and interest rates through income and substitution effects. 3) An increase in the interest rate (i1) motivates households to save more in the first period and consume more in the second period due to the substitution effect, and provides households income from their savings.