You put money into an account and earn a real interest rate of 4 percent. Inflation is 2 percent, and your marginal tax rate is 25 percent. What is your after-tax real rate of interest?

a. 1.5 percent.
b. 2.5 percent.
c. 5.0 percent.
d. 4.5 percent.


b

Economics

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Which of following is a key assumption of a perfectly competitive market?

A) Firms can influence market price. B) Commodities have few sellers. C) It is difficult for new sellers to enter the market. D) Each seller has a very small share of the market. E) none of the above

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Which of the following is a category (degree) of inflation?

(a) Deflation. (b) Externally induced inflation. (c) Demand-Pull inflation. (d) Stagflation.

Economics

To choose, based on the principle of rational choice, among combinations of goods with a cost in money, one must compare:

A. total utility of the combination of goods and their price. B. marginal utility of each additional good and its price. C. total utility only. D. marginal utility only.

Economics

Scarcity affects

A. only poor people. B. only middle income people. C. all people. D. only rich people.

Economics