Nope!

12. Savings decisions Clancy is a researcher who teaches particle physics at a university where he earms an annual salary of $160,000, He intends to take the next year off to focus on writing a new undergraduate physics textbook, so he will not earn any income next year. He is currently deciding how much of this year's salary he should save for next year. Assume that there are no tax implications associated with the decision, and ignore what happens after next year. Therefore, next year Clancy will consume whatever he saves this year plus interest, and he is not concerned with the future beyond next year. The foliowing graph shows Clancy's preferences for consumption this year and next year. Suppose initialiy clancy cannot eam interest on the money he staves. Use the green line (triangle symbol) to plot Carncy's budget constraint ( BCC1 ) on the following graph. Then use the black point (plus symbol) to show his optimum consumption bundie. Note: Dashed drop lines will automatically extend to both axes. Now suppose Clancy can eam 50% real interest on any money he saves. Use the blue line (circie symbol) to plot his new budget constraint (BC C2 ) an the previous graph. Then use the grey point (star symbol) to plot nis optimnum consumption bundie at this interest rate. (Wint: To phet AC2, think about how much money Clancy would have next year if he saved his entire income this yeari)