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Jenna's boss has decided to pay her a one-time bonus of $5,000. She decides to save the money until she retires, 4 years from now. She contemplates two savings options. Option A is to save the money for four years outside of an RRSP in a foreign corporate bond that will pay her 10 percent per year. Option B is to save for four years in an RRSP account with a domestic government bond that will pay her 8 percent per year. The marginal income tax rate that Jenna faces while she is working is 30 percent. When she retires her marginal tax rate will drop to 25 percent, as she will be in a lower tax bracket. As her financial advisor, which option do you recommend? (Answer this by calculating the net amount of her bonus upon cashing in the investment at her retirement.
1. is pareto improved demonstrated using the edgeworth box daigram?
We live in a globalized world economy. Our policy agenda, as we have discussed earlier have changed enormously to include environment, humanity in general as well as the conventio
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Suppose that economic outcomes can be classified as either good or bad. Governments differ in ability and this affects the likelihood of good outcomes. There are two types of gover
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Question: Awards for excellent performance are increasingly employed within the public service in many countries. These will or will not have a financial value. Performance-rel
The require for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Suppose these statements to be correct, 1. How will a successful campai
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