Suppose that there are only two time periods (working life and retirement). Suppose that Fred's income during his working life is Y, and that Fred initially has a positive level of savings. Suppose that the tax on interest income is initially t and the retirement savings subsidy parameter is initially 1 (all savings are subsidized). Suppose now that the government decreases the subsidy to retirement savings (retirement savings subsidy parameter now equals 2, all savings are still subsidized) and the income effect dominates the substitution effect. Will Fred save more or less? Demonstrate your answer with a diagram involving budget constraints (CR plotted against CW) and indifference curves. In your diagram, give the values of the endpoints of your budget constraints and the slopes of every segment of every one of your budget constraints. State the separate effects the income effect and the substitution effect will have on savings in this situation