With a nominal interest rate of 4%, an expected inflation rate of 1%, and interest income taxed at a rate of 25%, what is the expected real after-tax interest rate?
A. 3%
B. 1%
C. 0%
D. 2%
Answer: D
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The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise the
A) demand curve for bicycles shifts from D1 to D2. B) demand curve for bicycles shifts from D2 to D1. C) demand curve and the supply curve of bicycles do not shift. D) supply curve of bicycles shifts from S1 to S2.
One reason why present dollars are worth more than future dollars is because income-earning investment opportunities exist.
Answer the following statement true (T) or false (F)
the solutions to the principal-agent problem ensures that the firm is operating
What will be an ideal response?
The 10% tax surcharge in 1968 did not have much effect on people's consumption because:
A. people knew the tax was temporary. B. people thought the tax was small. C. people knew the tax was permanent D. people thought the tax was for a good cause.