Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of $20,000. However, if the inflation rate is 6% per year, how much buying power will that $20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.
Bus 200 week 7 Chapter 7 Free Trade vs. Government Intervention Interventions include: Restriction of imported goods and services Promotion of domestic production and exports Barriers 1. Tariffs a. Specific- fixed amount b. Ad valorem- percentage of the value c. Governments and domestic producers benefit d. Consumers and related industries suffer 2. Subsidiaries a. Government payments i. Sugar 1. Cash grants, low interest loans, tax breaks, government ownership b. Domestic producers more exports 3. Tariff Rate Quotas a. Hybrid of tariff and quotas b. Allows for lower tariffs 4. Voluntary Export Restraints
