One year ago Sam purchased bonds for $100,000 . He just sold them for $120,000 . During the year the price level rose by 5%. If the tax rate on capital gains is 20%, how much did Sam gain in real terms?
$11,000
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The main reason central banks engage in foreign-exchange interventions is to
A) stabilize the domestic money supply. B) stabilize domestic interest rates. C) stabilize foreign interest rates. D) stabilize the exchange rate.
When competing power blocs exist within an oligopolistic industry,
a. concentration ratios are low b. the laissez-faire approach can be justified c. prices are higher than under monopoly d. nationalization is necessary e. contestable markets exist by definition
If wealth, income, and standards of living are related in Canada as they are in the United States, then Canadian wealth is
a. more evenly distributed than income b. falling, if measured as per-capita wealth c. a good indicator of its poverty threshold d. less evenly distributed than income e. the reason why the Gini coefficient in Canada is less than 1
A firm can choose a quantity of output, and the price is then determined by
a. the government. b. the supply schedule. c. consumers' demand. d. the average cost.