A person received 4% nominal interest. The inflation rate was -2% and the tax rate was 25%. This person received an after-tax real interest rate of 5%
a. True
b. False
Indicate whether the statement is true or false
True
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Consider the change in the price of a book depicted in the above figure. The original budget line is BC. The new budget line is BD. As a result of this price change, the substitution effect can be represented by a movement from
A) point A to point E. B) point A to point G. C) point F to point G. D) point A to point F.
In terms of economic growth, the key measure of the standard of living is
A) real GDP per capita. B) real GDP. C) nominal GDP. D) nominal GDP per capita.
When nations specialize in their areas of comparative advantage and then trade with the rest of the world, the result is that
A. worldwide economic efficiency will decrease. B. the average standard of living in the world will go down. C. the average standard of living in the world will go up. D. the world will move from a point on the production possibilities curve to a point inside the curve.
All of the following are stock price indices except
A. the Fortune 500. B. the NASDAQ composite. C. the S&P 500. D. the Dow Jones Industrial Average.