New Savings? Suppose the government developed a new program to allow parents to save for their children’s college education in tax-free accounts. A wealthy parent decides to take advantage of this new...

New Savings? Suppose the government developed a new program to allow parents to save for their children’s college education in tax-free accounts. A wealthy parent decides to take advantage of this new program and sells some currently taxable bonds and places the proceeds into this account. Has this action led to any new savings?