You earn a nominal return of 6% on your savings and the tax rate is 20%. If the rate of inflation is 2%, what are the before-tax real interest rate and your after-tax rate of return?
4%, 2.8%
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. Ambient standards identify the desired level of environmental level to be achieved, typically expressed as a maximum allowable concentration of a pollutant. 2. Standards are the fundamental basis of most environmental policies. 3. A standard that specifies a pollution limit along with the equipment to be used to achieve that limit is called a performance-based standard. 4. If an environmental standard is set at a level where the associated marginal abatement cost (MAC) is equal to the marginal social benefit (MSB), it is considered an allocatively efficient standard. 5. Marginal social benefit (MSB) of abatement can be thought of as the reduction in damages linked to reducing pollution.
A worker who has invested in ________ skills will be ________ mobile than would otherwise be the case
A) occupation-specific; less B) occupation-specific; more C) ethical; less D) ethical; more E) occupation-nominal; less
On the graph above, an increase in government spending, with no change in taxes, is likely to move the economy from point 1 to point ________
A) 8 B) 6 C) 3 D) 5
The monopolist chooses to produce:
A. where marginal cost equals marginal revenue. B. at a higher quantity than the perfectly competitive firm. C. at an efficient outcome. D. at a cost that is equal to a competitive one.