Aconsumer is 20 years old and expects to live to age 80. he has a current wealth of $100,000, an annual income of $100,000, and plans on retiring when his is 60 years old. assume he smooths his consumption according to the life-cycle hypothesis. (he does not plan to leave any money to his kids when he dies).
show an equation that would explain his annual consumption c
compute this consumer’s savings in the year when he is 45 years old.
compute this consumer’s wealth in that same year.
which if the following would change his annual consumption more:

(1) he wins a $1 million lottery today, or
(2) his annual income is $120,000 (starting today). show why. show all work.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u. s. company and i don’t make decisions based on what’s good for the u. s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

The relationship requirement for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer. t or fwhich of the following is not a from agi deduction? a. standard deductionb. itemized deductionc. personal exemptiond. none of these. all of these are from agi deductions

Statistical process control charts: a. indicate to the operator the true quality of material leaving the process. b. display upper and lower limits for process variables or attributes and signal when a process is no longer in control. c. indicate to the process operator the average outgoing quality of each lot. d. display the measurements on every item being produced. e. are a graphic way of classifying problems by their level of importance, often referred to as the 80-20 rule.