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Scenario 1 : Individual Retirement Accounts ( IRAs ) allow workers to shelter a portion of their income from taxation. Suppose the maximum annual contribution

Scenario 1: Individual Retirement Accounts (IRAs) allow workers to shelter a portion of their income from taxation. Suppose the maximum annual contribution to accounts of this type is $6,000 per person. Now suppose there is a decrease in the maximum contribution, from $6,000 to $4,000 per year.

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