The nominal interest rate is 4%, the inflation rate is 1% and the tax rate is 20%. Given U.S. tax laws, how is after-tax real return computed?
a. .03(1-.20)
b. .04(1 -.20)
c. .04(1 - .20) - .01
d. None of the above is correct.
c
You might also like to view...
As a whole, nations are better off after trade and specialization because
A) nations can consume along their production possibilities curve, which is outside of their consumption possibilities curve. B) nations can consume along their consumption possibilities curve, which is inside of their production possibilities curve. C) nations experience an inward shift of their production possibilities curve. D) nations can consume along their consumption possibilities curve, which is outside of their production possibilities curve.
When output is greater than the economy's long-run capacity, which of the following is most likely to occur?
a. a reduction in the general level of prices b. an abnormally high rate of unemployment c. increases in real interest rates and real resource prices d. a reduction in imports
The growth in income inequality in the United States since the early 1980s has been driven primarily by the dramatic:
A. increase in real incomes for the top 20 percent of earners. B. increase in real incomes for the top 10 percent of earners. C. decrease in real incomes for the bottom 20 percent of earners. D. increase in real incomes for the top 1 percent of earners.
Kim's demand curve for sodas:
A. assumes that the only variables that change are the price of sodas and the quantity of sodas demanded by Kim. B. shows the quantity of sodas Kim consumes as her preference for sodas change. C. makes no assumptions about Kim's preference for sodas. D. assumes that the only variable that changes is Kim's income.