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Question: Insurance policies often are a combination of a savings program and life insurance. The individual pays the company, say, $1000 a year; $100 of that goes to cover the risk of his dying during the year, and the remainder goes into a savings program. The return on the amount in the savings program accumulates free of tax-just like an IRA. Explain how insurance can be used as a tax avoidance device.
Explain why do organization which bundle products and services have an advantage over those that don't or can't offer this option.
Assume that the real risk-free rate, r*, is 4% and that inflation is expected to be 8% in Year 1, 6% in Year 2, and 4% thereafter. Assume also that all Treasury securities are highly liquid and free of default risk. If 2-year and 5-year Treasury note..
One of the major problems in macroeconomics is disagreement in the debate over policy activism versus policy rules.
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
Crowding out can be minimized, if at the same time that the government increases spending, it:
Elucidate the need for full disclosure in financial reporting. Identify possible consequences of failing to properly disclose certain items in financial statements.
Calculate GDP in 2009 for this economy using the value added approach. Also, calculate GDP in 2009 using the expenditure approach. You need to show all ofyour work for full credit.
If both countries trade with each other, what is the maximum and minimum difference between the wage rate in Indonesia and the USA?
use the following to answer questions 1-4gross private domestic investment 46exports of the us 9disposable income
Suppose the demand for Digital Video Recorders (DVRs) is given by Q = 250 - .25p + 4pc, where Q is the quantity of DVRs demanded (in 1000s), p is the price of a DVR, and pc is the price of cable television.
Countries in the developing world are often concerned that their terms of trade may worsen economic growth occurs.
How does the demand curve faced by a purely monopolistic seller differ from that confronting a purely competitive firm? Why does it differ? Of what significant is the difference? Why is the pure monopolist demand curve typically not perfectly inelast..
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