Question: Problem: Contract 1: You will get from a bank $3 million every 2 years, starting today and for the next 20 years The interest rate

Problem: Contract 1: You will get from a bank $3 million every 2 years, starting today and for the next 20 years The interest rate is 18% APR semi-annually compounded. Contract 2: You will receive a perpetuity starting in 6 years. The first payment will be $5 million, and payments are made every 3 years, growing at a rate of 7% per period. The interest rate is 12% quarterly compounded. Which contract provides better outcome? Question: Do you see any link between fiscal policy and monetary policy

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