Problem: You are an entrepreneur and you have three possible contracts from clients, but you can choose only one. Contract 1: you will receive $8 million for 6 years starting in 5 years (so one payment in 5 years and 5 more payments starting in 6 years) Contract 2: you will receive $7 million today and you will continue to receive money every year for 9 more years (so 10 years in total) but it is growing by 3% every year. Contract 3: you will receive a $3 million perpetuity starting today (first payment is made today). The interest rate is 4.5% Financially, which contract is better? Question: Explain what the consequence on the economy would be if the federal reserve increases the required level of reserve