Suppose the tax rate is 25% and the taxable bond yield is 8%. What is the equivalent tax-exempt bond yield?
A. 2%
B. 6.9%
C. 2.3%
D. 6%
Answer: D
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The government strives to operate at neither a deficit nor surplus budget in order to keep the federal budget
A) balanced. B) in line with the stock market. C) equal to that of other countries. D) equal to inflation.
The social interest theory of regulation is defined as the
A) use of regulations to maximize firms' profits. B) use of regulations to assure an efficient use of resources. C) removal of regulations on business activities. D) implementation and removal of regulations on the cable TV industry. E) use of rate of return regulation.
The make-up of the Governing Council of the European Central Bank and the methods used to calculate price stability for the monetary system can potentially result in:
A. a policy for the median country rather than a policy well suited for any country. B. monetary policy that is well suited for some countries but ill-suited for others. C. small countries having undue influence on the decisions of the Council. D. all of the results listed are possible.
A private good is a good that:
A. is nonrival. B. is not excludable. C. is provided only by private sectors. D. is consumed by a single person or household.