If the inflation rate was 8%, and the tax rate was 20%, and you deposited money in a bank account that pays 12%, what is your after tax real interest rate? Show you work
The after tax nominal interest rate is 12% - 12%x20% = 9.6%.
The after tax real interest rate is 9.6% - 8% = 1.6%.
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Although monopoly and perfect competition result in different market outcomes, the fact that firms in both market structures work to maximize their profits ensures that resources are allocated efficiently in both situations
Indicate whether the statement is true or false
In its most ideal form, a price system allows
A) firms to act in such a way that they eliminate scarcity. B) consumers to satisfy all their wants. C) resources to move from lower-valued uses to higher-valued uses through voluntary exchange. D) government policy makers to allocate resources to the uses which they consider to be in the best interests of society.
The Gauss-Markov theorem for multiple regression states that the OLS estimator
A) has the smallest variance possible for any linear estimator. B) is BLUE if the Gauss-Markov conditions for multiple regression hold. C) is identical to the maximum likelihood estimator. D) is the most commonly used estimator.
What kind of garbage tends to be recycled in the United States?
a. hazardous materials that must be transformed chemically into less dangerous substances b. biodegradable materials c. foodstuffs d. aluminum, paper, and other materials that have high commercial value e. appliances that can be salvaged from dumps and repaired