Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider two competitive consumers who have the same endowment, with positive current income plotted on the horizontal axis and positive future income on the vertical axis. Each consumer’s current income is taxed at the rate t1 and future income is taxed at the rate t2. The first consumer becomes eligible in the current period to save up to $5000 in a traditional IRA, but there is no change in the consumer’s endowment and no change in the pretax market rate of return on saving, r. The second consumer becomes eligible in the current period to save up to $5000 in a Roth IRA. Again, there is no change in the consumer’s endowment and no change in the pretax market rate of return on saving. Money invested in a Roth IRA cannot be deducted from income tax, but the principal and return on the saving are not taxed.
a. Draw the effect on the consumers’ budget sets when they become eligible for the IRAs. Consider separately three cases in which t1 is greater than, less than or equal to t2. Assume that for both consumers borrowing is not tax deductible. Which type of IRA is more favorable for the consumers in each of these cases? Does the answer depend on the consumers’ preferences? If so, how? For each consumer, be as specific as possible, showing possible standard indifference curves and the slopes of all the segments of the consumers’ budget frontiers.
If you were macroeconomic policymaker, how do you balance the short-run trade off between inflation rate and unemployment rate? Explain. What is the historical relationship between rates of unemployment and inflation in the U.S. economy? What are the..
Suppose the demand for a new pharmaceutical drug, on which the manufacturer has a patent monopoly, is given by: Q(P,A) = (100 – P) ·A^0.5. Calculate the profit-maximizing price, advertising expenditure, and profits for the firm.
Draw a supply and demand graph to illustrate what will happen to the rental price of an apartment after the imposition of rent controls. Do you think this policy will benefit students? Why or why not?
Determine the after-tax cash flows for this investment. make adjustment in the DDB depreciation charges if necessary in any year in light of the SV of $20k
The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
what is the probability that sample variance would be less than 100? what is the probability that sample variance would be more than 500.
What does the term "INTEREST RATE INVERSION" refer to? For the past several years, the Federal Reserve System has forced short-term interest rates to nearly zero. Why has it not been able to do the same for long-term interest rates? Explain.
Suppose the average household in a state consumes 800 gallons of gasoline per year. A .20 tax is introduced coupled with a $160 annual tax rebate per household. Will the household be better or worse off?
Maria is a single mother. Every week she has 100 hours available to split between leisure and work. If she works, she can earn 20 dollars per hour. Write down the equation for her budget constraint and illustrate it with a graph.
An oil and gas XYZ company expects to produce 200,000 barrels of oil in time to deliver it on March 1, 2015. The management needs at least $30,000,000 for the oil to pay salaries, pay back loans, invest into new equipment, etc.
Elucidate how has the number of payroll jobs changed over the last 3 months and over last year in Antigua and Barbuda.
Find a Supreme Court case that deals with a constitutional issue (either pending or already decide d•Briefly describe the issue. Do you agree with the Court’s decision (or if it hasn’t been decided how do you think the case should be decided)? Why or..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd