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- Compute the present discounted value of the following income stream. Assume the interest rate is 3%. $100 every year, forever, starting 1 year from

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- Compute the present discounted value of the following income stream. Assume the interest rate is 3%. $100 every year, forever, starting 1 year from now future value (1+ interest rate)T r Assuming wages are free to vary, suppose the government decides to reform the tax system0 to increase the marginal tax rate across board. Explain the effects on wages, the employment-population ratio and unemployment all for the overall economy. PDV =

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