If the nominal rate of interest on a bond was 5 percent, the inflation rate was 3 percent and an individual was in a 25-percent tax bracket, the after-tax real return on the bond would be equal to
a. 2 percent.
b. 2.5 percent
c. .5 percent..
d. -.5 percent.
e. none of the above.
C
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Explain why to some game theorists, the idea of mixed strategies is appealing, and to others it is implausible
What will be an ideal response?
The classical dichotomy refers to the separation of
a. prices and nominal interest rates. b. taxes and government spending. c. decisions made by the public and decisions made by the government. d. real and nominal variables.
Which of the following government programs would be most appropriate to counteract cyclical unemployment?
A. More job training programs. B. Year-round school. C. Increased job placement services. D. Greater government expenditures to increase GDP.
The governement's budget constant shows that a government has ______ way(s) to finance a budget deficit, these ways are
Fill in the blank(s) with the appropriate word(s).