Friedman starts elaborating his theory under the assumption of complete certainty. Under these conditions, a consumer unit precisely knows each definite sum it will receive in each of a finite number of periods and knows in advance the consumer prices plus the deposit and the borrowing rates of interest that will prevail in each period. Under such circumstances, for Friedman, there are only two motives for a consumer unit to spend more or less on consumption than its income: The first is to smooth its consumption expenditures through appropriate timing of borrowing and lending; and the second is either to realize interest earnings on deposits if the relevant rate of interest is positive, or to benefit from borrowing if the interest rate is negative. The concrete behaviour of a consumer unit under the joint influence of these factors depends on its tastes and preferences.