A city street shows cars moving along the road, a man in black clothing walking, and a woman talking to a man on a bicycle.
A woman is talking to a man on a bike.
As shown in table 4.2, how much the couple's $4,000 annual contribution adds to national saving that year depends on (1) how much their IRA tax deduction costs the government and (2) whether their contributions represent new saving or were shifted from existing assets.