What is the maximum amount an investor should be willing to pay for a two-year $200 annuity, if the best alternative investment earns 20 percent per annum?

The fact that Alice spends no money on travel:

A) implies that she does not derive any satisfaction from travel. B) implies that she is at a corner solution. C) implies that her MRS does not equal the price ratio. D) any of the above are possible.

Explain the two stabilization policies politicians use to smooth business cycles

Please provide the best answer for the statement.