Julie is in the 28 percent tax bracket. She earns an 8 percent rate of return after taxes on a tax-free municipal bond. What will the after-tax rate of return be on a taxable bond (with equal risk)?
A. 36 percent
B. 28 percent
C. 14 percent
D. 8 percent
Answer: D
You might also like to view...
The benefit of holding money is ________, while the opportunity cost of holding money is ________.
A. its usefulness in carrying out transactions; the nominal interest rate B. increased income; lost purchasing power C. the nominal interest rate; the fees charged by banks D. the nominal interest rate; its usefulness in carrying out transactions
If the real interest rate is equal to the nominal interest rate in an economy:
A) inflation must be negative in the economy. B) inflation must be zero in the economy. C) inflation must be positive in the economy. D) the nominal interest rate must be zero.
In the short run, a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and increases real GDP
Indicate whether the statement is true or false
A "change in demand" is caused only by a change in the price of the good
Indicate whether the statement is true or false