Alyssa: to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. tim: indeed, it's gotten crazy! a government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. alyssa: i don't know about that. without a bailout of severely distressed financial firms, the economy will experience a deep recession.

After hearing a knock at your front door, you are surprised to see the prize patrol from a large, well-known magazine subscription company. it has arrived with the good news that you are the big winner, having won $21 million. you have three options.(a) receive $1.05 million per year for the next 20 years.(b) have $8.25 million today.(c) have $2.25 million today and receive $750,000 for each of the next 20 years.your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.